The return of $100 oil Speculators are increasingly betting on a return to $100 per barrel oil,
“'The market faces a supply crunch in the next 24 months,' said Francisco Blanch, head of commodities research at Bank of America Merrill Lynch in New York. 'Some hedge funds are betting that oil prices will need to rise sharply to bring demand down again -- that’s why they are buying deep out-of-the-money call options.'
"Over the last month, investors have bought call options -- giving the right to buy at a predetermined price and time -- for late 2018, 2019 and 2020 at strike prices of $80, $100 and $110 a barrel, according to data from the New York Mercantile Exchange and the U.S. Depository Trust & Clearing Corp.”
“How Far Can Oil Rally? Options Investors Bet on Surge Above $100” – Bloomberg
“Oil demand boosted as global refinery capacity to reach record”- Reuters
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