Oil traders place record bearish bets on Brent crude options

Brent crude: Brent crude is the leading international oil benchmark used to price crude produced across major global markets and traded through futures and options. In this news, traders are buying unusually large amounts of put options on Brent as Saudi Arabia works to restore pipeline flows and diplomatic developments raise hopes that disruptions around the Strait of Hormuz may ease. Supply outlook: Saudi Arabia is seeking to restore flows through its East-West pipeline, while reports of diplomatic progress have reduced some concern about prolonged disruptions near the Strait of Hormuz. Physical market: Recent reporting indicates that oil and liquefied-natural-gas flows through the Strait of Hormuz have continued, supporting the view that the most severe phase of the supply crunch may have passed. Market positioning: The options activity follows a sharp supply-driven rally that left traders repositioning for a possible pullback as disruption risks decline.