Traders bet on oil prices soaring to $200 per barrel
The current situation in global oil markets suggests that investors are optimistic about the future. With each passing day, more and more market participants are betting on oil prices continuing to gain in value. Some are confident that Brent will advance to $250 per barrel.
Currently, oil prices are trading upwards, drifting near 7-year highs at around $80 per barrel. Bets on Brent crude futures climbing higher are growing. Options for $100 per barrel have been changing hands for the past few weeks. Moreover, some traders believe that the oil market will rise above this mark. This is the first time this year that market participants have been betting on crude exceeding $200 per barrel. Such unusual values reflect not only a special assessment but also strong optimism. A few months ago, such projections seemed unrealistic, but now they come as no surprise.
Last week, for instance, 5 million barrels of Brent $250/$300 call spreads traded in the late session. These contracts will make money if oil prices spike to levels not seen since 2008. Notably, those contracts on Brent crude followed WTI call spreads. Options buyers expect the US oil benchmark price to hit $200-215 per barrel.