News

Oil Prices To Reach $110 per Barrel as Middle East Conflict Escalates

1 Mins read

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.

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.

“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?

us dollar crude oil brics opec
Source: Reuters / AFP

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.

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.

Source

1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Articles
Related posts
CryptoNews

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…
BNBCryptoNews

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…
CryptoNews

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥

Ailtra.ai will not disclose your account information to any 3rd parties.