Investors Sit on the Sidelines in Oil’s Drift Through $70
- Monthly OPEC+ meetings lower volatility; hedging activity slow
- Brent crude topped $70 a barrel this week to hit a 2-year high
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Look at headline crude oil prices and you’d assume financial flows into the commodity are running red hot. Think again.
Typically, when oil surges there’s an accompanying jump in trading activity. Speculators take profit on bullish bets, producers rush to lock in supplies, bank desks are awash with client activity. But with Brent closing above $70 a barrel for the first time since 2019, there has instead been eerie calm.