Oil Traders Flock to Niche Options Market to Bet on Glut

Investors have ramped up wagers in a relatively obscure corner of the oil market that OPEC+ output hikes will lead to an eventual glut toward the end of this year and into 2026.

Open interest in calendar spread options — the difference between West Texas Intermediate crude’s value over different delivery months — this week reached a record high, according to CME Group. The Commodity Futures Trading Commission’s latest report shows that speculators hold the biggest net position wagering on a weaker US crude futures curve since 2020.