OPEC Output Signals Spur Options Bets Oil Will Lurch Below $60
(Bloomberg) — A flurry of bets on Brent crude falling below $60 a barrel this year changed hands in recent days, a sign investors are hedging against the risk of another large production hike from OPEC and its allies.
Thursday’s trading saw a spike in activity in December $55 and $60 puts, with the combined open interest in both options ballooning to the equivalent of 120 million barrels of crude. Trading volume for the $55 puts was the highest since early April, when OPEC shocked markets with a supply increase three times bigger than originally scheduled. Brent crude is currently trading near $65 a barrel.
