Oil Traders Play it Safe Amid War Uncertainty

Morgan Stanley's oil traders have shifted their focus to shorter-dated futures contracts due to high uncertainty surrounding the ongoing wars in Iran and Ukraine.

The volatility has led many traders to bet on prices within a three- to six-month period, rather than longer-term contracts.

'People have been more precise with their risk,' said Brendan Ross, Co-Head Global Oil Trading at Morgan Stanley. 'They've decided what they really want and what's an unexpected bleed.'

The shift towards near-dated futures has resulted in a decrease in liquidity for longer-term contracts, according to Ross.