Oil at $120 Becomes Biggest Energy Bet as Futures Leave Forecasters Behind - Bloomberg

A worker at a gas station refuels a vehicle in Wujiang, Guizhou Province, China. Oil use in the world’s fastest-growing consumer, China, will jump 6.9 percent this year and 4.9 percent in 2012, according to a forecast in the IEA’s monthly Oil Market report on July 13.

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The biggest bet in the oil market has become a 20 percent increase to $120 by the end of the year as global growth drives demand for raw materials. The number of contracts held by traders in options to buy West Texas Intermediate crude at $120 a barrel in December totaled 45,502 lots on the New York Mercantile Exchange as of July 21, 4,226 lots more than the next-highest wager, which is for $125. Open interest in the two contracts jumped 29 percent in the past four weeks, according to data compiled by Bloomberg.

Oil at $120 Becomes Biggest Energy Bet as Futures Leave Forecasters Behind - Bloomberg