TREE NEWS reports: Morgan Stanley’s co-head of global oil trading, Brendan Ross, said traders are shunning long-term positions due to geopolitical tensions from wars in Iran and Ukraine. Speaking at an Asia Pacific petroleum conference in Singapore on Wednesday, Ross noted that traders are concentrating derivatives in shorter-dated contracts and becoming more ‘rational’ about risk. They now favor selective, specific instruments over broad exposure.
Morgan Stanley: War Risks Make Oil Traders Avoid Long Bets
AI take
The shift toward short-dated contracts signals a market pricing in acute, near-term geopolitical shocks rather than a stable supply-demand outlook. This affects liquidity dynamics and risk management across energy derivatives, as traders prioritize flexibility over conviction. The open question is whether this rational, selective approach becomes the new norm or unwinds if conflict risks de-escalate, which would test the depth of the current cautious posture.
Generated by AI for reference only.
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