Oil Traders Play it Safe as Brent Crude Surpasses $100

The price of Brent crude oil has reached $100 per barrel for the first time since July 24, but oil traders are not taking long-term bets on its future. According to Morgan Stanley's co-head of global oil trading, Brendan Ross, traders are focusing on contracts covering the next three to six months due to geopolitical uncertainty.

Ross stated that 'people have been more precise with their risk' and are deciding carefully which exposures they want. This caution is making longer-dated oil contracts less liquid as fewer participants trade them.

The biggest disconnect between physical supplies and financial markets has appeared in oil products, where disruptions have tightened diesel and pushed fuel prices higher, Ross added.