Volatility on energy markets, especially in crude oil prices, has caused that CME Group Inc reached its new trading volume record on futures for this commodity.
CME Group, a marketplace for derivatives, informed today that it had reached the highest number in a trading volume for WTI Light Sweet Crude Oil futures in February 9, 2016.
It reached 1,603,771 WTI futures contracts over February 9, beating the previous highest number of 1,595,710 futures contracts from December 8, 2015.
Moreover, CME Group published that an open interest record of 408,652 contracts for RBOB Gasoline futures from February 9 surpassed the previous record of 406,054 contracts, only from the previous day, February 8, 2016.
These numbers are only pointing to the high popularity of energy markets now with rising volatility and falling oil prices in focus.
But what to expect? Lifted Iranian embargo opened the gate for the world’s top 4 producer, who has been watching other competitors, how they took advantage of his lost position and now is prepared to gain its share on the market, as already officially announced by the representatives of this country.
On the other hand, Saudi Arabia is only watching with embarassment, how this major oil producer is gaining strength again and naturally it is not helping the security in the region, as both competitors tend to struggle in all the fronts (as we have seen in a murder of Shiite ecclesiastical dignitary in Saudi Arabia, or an attack on Iranian embassy).
Nevertheless, Iran is not the only game-changer, causing oil prices to drop. China’s transformation and generally weak global demand is hurting oil market markedly, as suppliers have increased the competition incredibly, so traders won’t let them overcome this situation so easy.
We believe, that the oil prices will be subdued for a longer period of time, as the demand has no optimistic outlook to recover so soon, only suppliers can cut production strictly, but who’s going to be the first… It seems that we can expect more records on the crude oil futures trading volumes.
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