Financial Market: Speculators Boost Product Bets Along Crude

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Even though risk managers are still preventing more speculative capital to flow into crude oil futures given price volatility, the money in the market is making its presence felt. Backwardation is at record levels. Activity in options on futures is reverberating in the futures market. More capital has also flowed into products, with US gasoline and diesel in both the US and Europe the favorite destinations. All the inflows reflect concerns over security of supply in Europe as Russia flexes its muscles on Ukraine’s border. But regardless of geopolitics, risk capital also expects fundamentals to show a tight crude and products market, at least through the summer.

Oil Futures and Derivatives, Oil Prices, Crude Oil, Oil Products
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