Oil traders believe the ongoing Russian-Ukraine war and its international fallout could drive up prices this month, with some optimistic traders eyeing a price over $200 per barrel.
On Monday, prices to buy call options increased, including at least 200 traded contracts to buy May contracts for Brent futures at $200 a barrel by the end of the month, Bloomberg reported. June Brent contracts also increased as a $150-a-barrel call option doubled just ahead of the weekend and a $180-a-barrel option jumped 110 percent, according to the report.
Russia’s invasion of Ukraine last week has spurred several countries to take action by enacting financial sanctions, barring Russia from international banking systems, or have announced they are considering crude bans. As Russian supplies continue to be disrupted, opportunistic traders are looking to cash in on the potential oil scarcity.
The U.S., Saudi Arabia, and Russia are the largest oil producers in the world, with Russia exporting 7.8 million barrels a day of crude last year, Bloomberg reported.