Investors flooded the market on Monday, trading a record 12.7 million energy futures and options contracts as oil prices surged following military actions between Israel and Iran. The Intercontinental Exchange reported unprecedented activity, with global benchmark ICE Low Sulphur Gasoil seeing 1.3 million contracts traded. U.S. diesel futures climbed nearly 12 percent, significantly outperforming crude and gasoline. Analysts attribute diesel's vulnerability to the Middle East conflict and dwindling inventories after a harsh winter.
U.S. oil producers actively sought to secure current high prices. West Texas Intermediate crude futures rose 8 percent and Brent crude jumped 11 percent at the market open. Aegis Hedging reported significant producer engagement, with a quarter of their clients preparing to hedge positions. Many opted for swaps to convert potential price volatility into fixed rates. While some analysts predicted prices above $90, Brent opened around $81.60 and WTI at $75. Further hedging is anticipated if disruptions to the Strait of Hormuz, a critical shipping lane, persist.