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Oil Downside Risk at Four-Year High on OPEC Inaction Fears

  • Rising put demand drives ‘skew’ to highest level since 2014
  • Credit Suisse recommends put spreads for Dec. 6 cartel meeting
Bloomberg business news
Oil Plunge Is Already Cutting Fuel Prices

Energy traders are bracing for an OPEC-induced sell-off like it’s 2014 all over again.

Investors are terrified that major producers are about to pull the rug out from under prices at their Dec. 6 meeting, a replay of four years ago when the group elected to forgo output curbs. Options show a scramble for protection in the United States Oil Fund LP, ticker USO, which aims to track the price of West Texas Intermediate crude futures.