Speculators betting on oil falling to $ 15

12/24/2015 19:22

BAGHDAD / Obelisk: Speculators betting on oil markets, the continued fall in oil prices, where the combination "Brent" record at the beginning of this week, the lowest level in 11 years, with continuing pressure on the market as a result of increased oil supplies.

According to the agency, "Bloomberg" The US, on Thursday, that the speculators liberated contracts for the sale dubbed the "option of future sales - Put Options" at a price of $ 15 a barrel, well worth the next year in 2016.

And contributed to the increase in the number of reports that pointed to an increase in oversupply, and that after the "OPEC" failed to locate the production ceiling, and enthusiasm Iran to increase its oil exports after the lifting of sanctions by the beginning of next year, in addition to Washington's decision to lift the ban in 40 years on the export of oil to outside the United States.

This means increasing the number of pessimists those who believe continue to decline in crude prices because of oversupply that pushed oil prices to decline by about 60% since the middle of last year, to coincide with the decision to raise the interest rate in the United States, which supports the hypothesis "a strong dollar and falling commodity," as the high value of the dollar increases the cost to the holders of other currencies when purchasing dollar-denominated Slat.

It is noteworthy here that the contracts "future put option" or "Put Options" is one of the types of hedge decades of low prices from current levels, which are hammered in the stock market. And give the "Put Options" contracts for the purchaser the right to buy or sell a commodity at a specified date at a price agreed upon in advance, the buyer shall not result in any obligations under the contract.