Oil options “frenzy” as corporates shift hedges in response to Mideast crisis

Mideast and Libya crisis fuels oil options “frenzy”

Libyan oil worker

In the last week of February, oil trading changed from being driven by fears of possible disruptions to Middle East oil supplies, to news of actual disruptions in Libya. The country reportedly declared force majeure on some oil product exports on February 22, and on February 24, the International Energy Agency (IEA) estimated that between 500,000 and 750,000 barrels per day of crude oil had been taken out of the market, an estimate that was pushed up to at least 850,000 barrels per day on Feb