Oil floats on op­ti­mism of $100 by next year

Khaleej Times - - FRONT PAGE -

lon­don — When crude prices crashed in early 2016 to $27 per bar­rel, most in­dus­try ex­ec­u­tives said the world had seen the last of oil at $100.

Al­most two years later, as a global crude glut shows signs of re­ced­ing, the oil op­tions mar­ket has seen a spike in ac­tiv­ity at $100 a bar­rel, in­di­cat­ing some oil bulls are bet­ting the price could trade around that level by this time next year.

The oil price has hit its high­est since 2015 and af­ter hav­ing shied away from $60 a bar­rel this week, the chances of a rally be­yond this point seem re­mote. But that hasn’t stopped some pun­ters from snap­ping up De­cem­ber 2018 buy op­tions at $100 at bar­gain­base­ment prices.

Open in­ter­est in De­cem­ber 2018 $100 call op­tions, which ex­pire next Oc­to­ber, has tre­bled in the space of a week to more than 30,000 lots, on a par with the most ac­tive con­tract among De­cem­ber 2017 op­tions — $60 calls. —

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