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Players Betting on Price Of Oil Rising

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  • Description

    Louise Cooper of BGC Partners breaks down the indicators that will send oil prices higher.

  • Duration 4:15
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This transcript is automatically generated

Greece the major worry in the markets right try again.

-- Iran as we've been reporting Iran halting oil exports to Britain and France.

And my next guest says prices for oil well will only go higher.

Senior financial analyst at BDC partners.

Louise I'm trying to get that out -- what are you looking at that indicates you think that oil will continue to -- about.

I think -- well it.

This book price of oil is of the nine month high for -- about a weighting indicates that where we have pretty elevated levels and that level.

The price for 2000 -- and it's already up 40% on 2010.

So already up -- -- levels full -- -- in the spot market.

But actually unique -- look at the options market to -- get an indication.

All of geopolitical risk and if you not happening the amount of the cold flying has been sending me huge and it happened.

Really in the last month fourteenth.

If you look at Japan in trust fund the icy exchange and clearing house -- in London.

Then the number of contracts of I didn't trust back full life -- -- -- in the next month.

Is like twenty to thirty times the level of about a month or two months 03 months the guys that.

Huge.

Huge cool buying suggesting that while many people out back -- oil is anybody gonna go up from him.

And is it is it just Iran is it also concerns about production coming out of a rock.

I mean you still have Libya of much of that produce that much of that production has come back on line but.

Is it surely geo political and and not and not driven by depends.

-- -- couple other things going on this but US economy on the CB bounding.

And Europe has had a very cold -- -- but it's also helping that you might go up plenty of other countries in the Middle East big oil producing nations.

We have problems with supply -- if it's not just Iran I think Iran is the tipping point.

And also if you just look at the cool options if you look at put options.

That we -- in pressed up put options is really very small -- -- to cool so again.

Very few buyers of puts out -- suggesting very few people are looking for protection before -- oil price.

Massive in dressed in eight and a high oil price for him what is particularly interesting is many people think that will happen in the next month.

So these eight cool cool but expire on the fifth think that much huge I put in trust in the sector.

Really very interesting that's a lot of play us out that glove really acting on the possible -- getting in one direction and then just for those people it.

-- call option as an option to it to buy.

Mom and LA and -- -- -- higher price at a later day.

Louise one I've -- lower priced its Louise one more thing -- what about the European economy.

So much talk about Greece how concerned are you about the impact of these higher oil prices on growth there.

-- ice means that a constrained economy and that's what it's not that constrains economic -- So putting the trust right liquidity flooding that the sort of -- by higher oil -- 2008.

Sweat drenched the price of dollars a Powell and that was the big oil -- What actually within six months the -- -- Very high it was well -- -- -- hundred dollars not as when a high level of oil price.

-- be really damaging to -- put my people look oil at the big input cost.

Because those companies will be feeling the -- right and on that -- we're going to be talking about the airlines here raising their ticket prices raising fares Louise thanks for being -- great to talk to you.

Always passionate always informative Louise Cooper and BGC partners.

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