A Record Number Of Oil Contracts Were Traded In January

(MENAFN- Yolo Wire) A record amount of oil contracts were traded in January as geopolitical risks spiked after the U.S. took control of Venezuela's crude reserves.

Analysts speculate that traders were also concerned about Iran's crude oil supplies going forward as U.S. President Donald Trump threatens to attack the Middle Eastern nation.

The record trading comes as energy traders look to hedge against sharp price moves and producers seek to reduce risk and ‍protect their production from sharp moves in the market.

Data shows a record 1.9 million contracts for West Texas Intermediate (WTI) crude, the U.S. oil benchmark, were traded during January.

Traders also set a daily record for WTI contracts at 257,569 on January 30 of this year. That occurred as U.S. oil prices hit a six-month high on tensions between the U.S. and Iran.

Another factor influencing the January trading was severe winter weather across much of the U.S., disrupting oil production ⁠and ⁠refining capacity.

Analysts note that trading in crude oil contracts remains intense heading into February as geopolitical risks continue to cause volatility in the global energy market.

WTI crude oil is currently trading at $63.48 U.S. per barrel.

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