As tensions in the Middle East rise, traders are betting on oil at $80 US dollars.
The most West Texas Intermediate crude oil call options of $80 have been traded since January. Traders expect prices to rise further after Israeli airstrikes against Iran raised fears about a wider Middle East war.
Call options give the holder the right to purchase a futures contract for the price and date specified. A rise in volume can be used to gauge the market sentiment.
CME Group data shows that on Friday, 33,411 contracts worth $80 for WTI crude oil call options expiring in August 2025 were traded. This was the largest volume of these options so far this year.
Last time the trading volume for $80 calls was so high was on January 10th, with 17,030 $80 February-2025 call options being traded out of a total trading volume 301,866 contracts.
Oil prices rose on Friday, settling 7% higher after Israel and Iran launched airstrikes. Investors were worried that the conflict could disrupt Middle East oil exports.
U.S. West Texas Intermediate finished at $72.98 per barrel, an increase of $4.94 or 7.62%. WTI reached its highest level since January 21, at $77.62, during the session. (Reporting from Noel John, Bengaluru. Additional reporting by Georgina Mcartney and Diane Craft.
(source: Reuters)
