Options could help drive crude oil to $100

LONDON (Reuters) – Activity in U.S. crude oil options has played a big part in oil’s climb above $90 a barrel and could help U.S. crude break the $100 mark.

“We continue to view option hedging as one key driver to the direction of…futures,” said Olivier Jakob, of oil market consultancy Petromatrix.


“We’ve gone through $90, now the additional momentum is going to come from the call (options) on $100,” he said.

Oil is at record highs as supply concerns, a weak dollar and tensions in the Middle East have helped draw investment money into crude and other commodities.

Investors in oil can use options to bet on price direction while commercial end-users of oil such as airlines can use them to protect against sudden price spikes.

Reuters