Morgan Stanley: oil traders cutting longer-term risk as war uncertainty rises
Morgan Stanley’s Brendan Ross says oil traders are reducing longer-term exposure amid Iran and Ukraine war uncertainty, concentrating positions over three to six months and tightening derivatives risk selection.
Oil traders are trimming longer-dated exposure as the Iran and Ukraine wars increase uncertainty, according to Morgan Stanley's Brendan Ross. Ross said positioning is shifting into the next three to six months, while traders are becoming more selective about derivatives risk. He said the move is reducing liquidity in longer-dated contracts and adding to market uncertainty. Oil products have been hit hardest by supply disruptions, with diesel and other fuel prices surging globally.