Middle East Conflict Spurs Bullish Rush in Oil Options Market - BNN Bloomberg

Call options, which profit from higher prices, surged relative to bearish put contracts for the Brent global crude benchmark on Monday. The difference between the two, known as the skew, was on track for its biggest one-day move since March 2022, when oil prices rocketed in the aftermath of Russia’s invasion of Ukraine.

Oil prices in New York surged as much as 5.4% on Monday as the conflict threatened political stability in the wider Middle East — the latest sharp swing in an oil market that has seen a tumultuous few weeks. Late last month, prices looked set to rally to $100 a barrel, before an ensuing sharp slump, driven by financial flows and demand concerns, saw them shed about $10 over a week.

The tumble led to a surge in options volatility last week as traders who had positioned for higher prices rushed to cover themselves when oil fell. That had caused the skew to surge in favor of puts, but the move reversed Monday. The price shift also showed up in volumes, with call trading outpacing that of puts significantly on Monday. About 154,000 Brent calls traded by 11:27am in New York, compared with 52,000 put options. Among the most actively traded contracts were calls for $100- and $110-a-barrel oil for December.The global sell-off in bonds is a sign of acceptance that higher interest rates will be around for longer, experts say, noting that the shift holds implications for borrowing rates and mortgage holders.

The United Auto Workers union has decided not to expand its strikes against Detroit's three automakers after General Motors made a breakthrough concession on unionizing electric vehicle battery plants.The CEO of Enbridge Inc. is calling on the federal government to create a national Indigenous loan guarantee program to help First Nations communities in Canada acquire equity stakes in major resource and infrastructure projects.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Hedge funds sell energy stocks before Middle East conflict - GoldmanGlobal hedge fund managers were selling U.S. stocks sensitive to commodities at an accelerated pace in the week ending October 6, according to a Goldman...
Источник: YahooFinanceCA - 🏆 47. / 63 Прочитайте больше »

Hedge funds sell energy stocks before Middle East conflict - GoldmanExplore stories from Atlantic Canada.
Источник: SaltWire Network - 🏆 45. / 63 Прочитайте больше »

European Stocks, Oil Soars Drop on Middle East Conflict  - BNN BloombergEuropean stocks fell after Hamas’s surprise attack on Israel threatened to inflame tensions in the Middle East, hurting risk sentiment. Oil stocks soared.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

US futures tumble as Middle East conflict rattles markets: Stock market news todayThe prospect of a full-blown war in the Middle East added a dose of geopolitical risk to the interest-rate and inflation concerns already facing markets.
Источник: YahooFinanceCA - 🏆 47. / 63 Прочитайте больше »