Crude Drops 5.5% Below $90, Traders Place $7B in Bearish Oil Bets
BNO•Crude futures fell 5.5% below $90 a barrel after a US plan to end the Iran war and reopen the Strait of Hormuz, before paring losses. Traders amassed $7 billion in bearish oil bets while US diesel supplies sank to a two-decade low, sending pump prices to $5.67 per gallon.
1. Oil Price Volatility
Crude oil futures briefly plunged 5.5% below $90 a barrel after Washington proposed a plan to end the Iran conflict and reopen the Strait of Hormuz. Prices then recouped most losses as negotiations stalled and Iran continued to assert control over the critical oil transit route.
2. Trader Betting Activity
Traders placed approximately $7 billion in bearish bets on oil futures and derivatives during March and April, reflecting growing skepticism over sustained upward price momentum. These positions spanned multiple exchanges and fuel contracts, intensifying intraday swings.
3. US Diesel Supply Shortage
Record US crude exports have drained domestic diesel stocks to their lowest level in about 20 years. Diesel pump prices surged to $5.67 per gallon, raising concerns over potential fuel shortages as summer travel demand increases.
