Geopolitical Risks Boost Oil Hedging to Record Highs

Traders and investors traded record-high numbers of options and futures contracts in October, seeking to profit from the oil market volatility and protect themselves against price slumps or spikes. Oil options are contracts that give the holder the right, but not the obligation, to buy or sell oil at a set price if it moves beyond that price within a set timeframe. As war risks increased following Iran’s missile attack on Israel in early October, markets were awaiting the Israeli response for most of last month and were frantically…