Oil Glut Bets Revive as WTI Futures Slump After US-Iran Peace Deal
Updated
Updated · Bloomberg · Jun 22
Oil Glut Bets Revive as WTI Futures Slump After US-Iran Peace Deal
3 articles · Updated · Bloomberg · Jun 22
Summary
Niche options tied to an oil surplus are back in play after a US-Iran peace deal knocked crude futures lower and revived expectations that near-term prices could weaken against later contracts.
Those trades had been sidelined when the US attack on Iran flipped the market into a supply-scare structure, sending prompt barrels sharply above deferred months.
In late April, August WTI briefly traded more than $5 a barrel above September, while September stood another $4 above October — the opposite of the contango glut traders had been targeting.
The renewed positioning signals traders now see easing geopolitical risk reopening the possibility of oversupply rather than shortage in the oil market.