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Extreme Oil Bears Bet on $25, $20 and Even $15 a Barrel in 2016

  • Investors buy put options significantly below current prices
  • Goldman Sachs reiterates risk of $20 a barrel in New Year
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Crude Oil Heads for a Second Annual Loss

Oil speculators are buying options contracts that will only pay out if crude drops to as low as $15 a barrel next year, the latest sign some investors expect an even deeper slump in energy prices.

The bearish wagers come as OPEC’s effective scrapping of output limits, Iran’s anticipated return to the market and the resilience of production from countries such as Russia raise the prospect of a prolonged global oil glut.