Oil Prices To Reach $110 per Barrel as Middle East Conflict Escalates
Commodity traders are betting on ‘Call options’ on Brent Crude claiming that oil prices are on the way to reach $110 per barrel. According to the bets, the oil prices may skyrocket in spring come March to April 2024. The bets on higher oil prices have now reached an amount equivalent to around 30 million barrels.
Also Read: Pakistan Must Never Be Allowed To Join BRICS Under Any Situation: India
Oil prices have maintained stability at $80 per barrel for weeks making gas cheaper and affordable in the US. The global prices have also remained steady with little disruption in the last two months. However, traders believe the momentum won’t last long, and a drastic price rise is on the cards.
‘Call options’ bet has sprawled across $110 to $130 per barrel and expires on May and June 2024, reported Bloomberg. These buyers would profit immensely if oil prices reach $110 per barrel and beyond making stellar profits.
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“This move was predominantly driven by fresh shorts entering the market, with the gross short increasing by 28,578 lots over the week,” ING strategists Warren Patterson and Ewa Manthey wrote.
Why Traders Bet Oil Prices Would Reach $110 Per Barrel?
The conflict in the Middle East is the sole reason why traders are betting by buying ‘Call options’ on oil prices. The Red Sea tensions are escalating as the Iran-aligned Houthi rebels fired drones and missiles from Yemen. The move targeted shipping in the Red Sea, and now the US and UK Navy ships are looking to protect cargo and crude shipping.
Also Read: 30 New Countries Ready To Join BRICS in 2024, Confirms Russia
The sea route is vital for the oil prices to remain steady and a conflict could send it soaring in the coming months. Traders are betting that the conflict will only escalate and not slow down. However, the US and UK Navy ships have shot down several drones and missiles of the Houthi rebels protecting the shipments.
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Oil Prices To Reach $110 per Barrel as Middle East Conflict Escalates
Commodity traders are betting on ‘Call options’ on Brent Crude claiming that oil prices are on the way to reach $110 per barrel. According to the bets, the oil prices may skyrocket in spring come March to April 2024. The bets on higher oil prices have now reached an amount equivalent to around 30 million barrels.
Also Read: Pakistan Must Never Be Allowed To Join BRICS Under Any Situation: India
Oil prices have maintained stability at $80 per barrel for weeks making gas cheaper and affordable in the US. The global prices have also remained steady with little disruption in the last two months. However, traders believe the momentum won’t last long, and a drastic price rise is on the cards.
‘Call options’ bet has sprawled across $110 to $130 per barrel and expires on May and June 2024, reported Bloomberg. These buyers would profit immensely if oil prices reach $110 per barrel and beyond making stellar profits.
Also Read: BRICS: Russia & Iran End SWIFT, Start Bank Transfers in Local Currency
“This move was predominantly driven by fresh shorts entering the market, with the gross short increasing by 28,578 lots over the week,” ING strategists Warren Patterson and Ewa Manthey wrote.
Why Traders Bet Oil Prices Would Reach $110 Per Barrel?
The conflict in the Middle East is the sole reason why traders are betting by buying ‘Call options’ on oil prices. The Red Sea tensions are escalating as the Iran-aligned Houthi rebels fired drones and missiles from Yemen. The move targeted shipping in the Red Sea, and now the US and UK Navy ships are looking to protect cargo and crude shipping.
Also Read: 30 New Countries Ready To Join BRICS in 2024, Confirms Russia
The sea route is vital for the oil prices to remain steady and a conflict could send it soaring in the coming months. Traders are betting that the conflict will only escalate and not slow down. However, the US and UK Navy ships have shot down several drones and missiles of the Houthi rebels protecting the shipments.
Read More