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17 Aug, 2012

Hedge funds bet on oil spike as Israel attack fears grow – Ahram Online

Hedge funds are quietly laying new bets on a potential spike in oil prices tied to the possibility of an Israeli attack on Iran, skewing the options market to a bullish bias for the first time in six months.

Activity is muted so far by the summer lull, but could pick up in September.The renewed premium has been most apparent in futures markets, with benchmark ICE Brent crude gaining 10 per cent over the past two weeks. At the same time, hedge funds boosted their bullish bets in U.S. oil markets a week ago to the highest since early May, regulatory data shows.

via Hedge funds bet on oil spike as Israel attack fears grow – Economy – Business – Ahram Online.