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Traders exit complex bearish U.S. oil options as Cushing supplies tighten

From reuters.com

Oil traders raced to abandon complex, bearish options trades in U.S. crude this week, after the market rapidly shifted to reflect tighter supplies at the key Oklahoma storage hub over the past month, leading to a surge of activity in a typically illiquid corner of the market.Because of new pipelines flowing out of the Permian basin, the biggest U.S. shale field, to the Gulf Coast, shipments to Cushing, Oklahoma, the delivery point for U.S. crude futures, are expected to dry up. Inventories have already dropped for seven straight weeks at the vital storage hub - at a faster-than-expected rate, traders said. Trading in ... (full story)

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  • Category: Fundamental Analysis