Private investors have stepped up their trading in oil options, as the instability in Northern Iraq has driven oil prices up, says Banc De Binary, the leading binary options trading firm.
69% of positions taken on oil by private investors on Banc De Binary’s binary trading platform are predicting a further rise in oil prices. This compares to an average of 62% of positions forecasting an increase in oil prices over the course of last week (w/c June 9).
Trading activity accelerated following the fall of Mosul to insurgents on June 10, culminating in 71% of all positions in oil taken by private investors being long on oil as trading closed last Friday.
Oren Laurent, Founder of Banc De Binary explains: “Private investors have been paying close attention to the events in Iraq over the last week as instability in the Middle East has long been known for having a dramatic impact on the price of oil.”
“Iraq is a big part of expected expansion in oil output over the next few years so further instability could push prices up further.”
However, Banc De Binary advises investors not to over-extend themselves because a resolution of the situation could trigger a sharp correction in the price of oil.
Brent Crude prices have risen from US $108 on June 3 to US $113 on June 18.