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Crude Extends Losses on Easing Concerns Over Mideast Tension - BLOOMBERG
(Bloomberg) -- Oil extended losses in late trading on easing concerns over tensions in the Middle East.
Adding to the gloom, OPEC joined a chorus of others projecting weakening demand growth. The group trimmed its forecasts this year and next for a third consecutive month.
In the options market, traders had been bracing for Israel’s response to Iran’s Oct. 1 ballistic missile attack. For WTI, calls were at the widest premium to puts since 2022, when Russia invaded Ukraine. Weekly volumes for Brent options were the second-highest on record last week, having hit a weekly record the previous week.
“The market look worse to me in terms of fundamentals but remains held hostage by geopolitics and is likely to stay that way,” said Scott Shelton, an energy specialist at TP ICAP Group Plc.
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--With assistance from Weilun Soon and Alex Longley.
