LONDON, April 22 (Reuters) - Traders placed a series of bets worth $430 million on a drop in crude prices just 15 minutes before U.S. President Donald Trump said he would extend a ceasefire with Iran
Traders Bet $430 Million on Oil Price Drop Before Trump’s Iran Ceasefire Move
Large, Well-Timed Oil Market Bets Precede Major Iran Announcements
Overview of Recent Trades
LONDON, April 22 (Reuters) - Traders placed a series of bets worth $430 million on a drop in crude prices just 15 minutes before U.S. President Donald Trump said he would extend a ceasefire with Iran on Tuesday.
It is the third time this month, and the fourth in total, that large, well-timed directional bets on the oil price have been made shortly before major announcements on the Iran war. One combined wager in March was worth $500 million, while April's bets have together totalled some $2.1 billion.
Details of the $430 Million Trade
• Between 1954 and 1956 GMT on Tuesday, 4,260 lots of selling hit the oil market, worth a combined $430 million, based on the prevailing Brent futures price, according to LSEG data. Trump said he would extend the ceasefire indefinitely at 2010 GMT.
• The Brent market settles at 1830 GMT, meaning these trades took place in what is known as post-settlement hours, when volumes are usually extremely limited.
• The trades did not have much impact on the price, which edged down to $100.66 a barrel, from $100.91 before they took place. After Trump's announcement, Brent crude futures fell to a low of $96.83 in the minute that followed. They were last trading at $99.2 a barrel at 1200 GMT on Wednesday.
Previous Well-Timed Bets
March and April Trades
• On March 23, 15 minutes before Trump announced a delay to threatened attacks on Iranian power infrastructure, anonymous traders placed $500 million on a drop in the oil price. Similarly, on April 7, bets worth $950 million went through just hours before Trump's announcement of a two-week ceasefire.
Strait of Hormuz and Additional Bets
• On April 17, some 20 minutes prior to the Iranian foreign minister posting on social media that the Strait of Hormuz would be open to commercial shipping, traders placed $760 million in bets on a falling oil price.
Regulatory and Market Response
Investigations and Comments
• The U.S. Commodity Futures Trading Commission is investigating a series of oil futures trades, including those on March 23 and April 7, that were placed shortly before major policy shifts by Trump related to the war in Iran, a person familiar with the matter said on April 15.
• A spokesperson for the Intercontinental Exchange, known as ICE, declined to comment.
Reporting Credits
(Reporting by Amanda Cooper; additional reporting by Ahmad Ghaddar. Editing by Alex Lawler, Kirsten Donovan)
