Crude gains: Oil surges 5% as some take profits

Some traders took profits on short positions after prices this week hit their lowest since 2009


Reuters December 21, 2014

LONDON: Oil closed up as much as 5%, its biggest gain in over two years, as some traders took profits on short positions after prices this week hit their lowest since 2009. A sharp bout of short-covering prior to expiry of the US January crude oil contract alleviated pressure in a market dominated by sellers the past six months and lighter-than-usual pre-holiday volume exaggerated the rise on a day that otherwise lacked much in the way of headline news. While some traders may be betting that $60 a barrel Brent represents a likely floor for the market, others remain unconvinced. With uncertainty high, demand for options has surged this week, with the CBOE crude oil volatility index soaring to its highest since 2011.

Published in The Express Tribune, December 21st, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ