An Oil Trader Just Made $11 Million From WTI Getting Weaker
- WTI-Brent spread options trade appears to close March position
- Bet on weaker spread could have posted profit of $11 million
Namara's Dugan Says Oil Demand Is Stronger
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Here’s a good news story for shale bears.
As West Texas Intermediate crude hits its weakest relative to the global Brent benchmark since January, someone likely just made at least $11 million from the spread widening. Ten million barrels of WTI-Brent put spreads at a -$4.50 strike traded on Monday, less than a week before expiration, data compiled by Bloomberg show. The trades likely cashed out of a profitable 9.4 million-barrel bet on the spread weakening, placed early last month.