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How Trump Crushed Millions of Dollars in Oil Options Trades

  • President-elect suggests border-tax plan too complicated
  • WTI plummets against Brent for some contracts in 2018, 2019
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Crude Slides on U.S. Oil Supply Predictions

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A corner of the oil market has been in a frenzy about potential tax-reform plans favored by House Republicans. Now, some who study the market say comments by President-elect Donald Trump have poured cold water on those plans, devaluing millions of dollars in options trades.

In recent weeks, traders increased bets that the U.S. crude oil benchmark price would rise above its global counterpart, amid Republican support for a so-called border tax affecting imports into the U.S. However, Trump described the tax plan as “too complicated” in an interview with the Wall Street Journal this week, casting doubt on the proposal and putting the bets on oil prices at risk.