During Tuesday's trading session, the most traded contract across the entire ICE Brent market was the $100 December 2018 call option. Bloomberg noted that the options cost the investor or investors north of $1 million but will soar many times over if oil prices spike.
On the other hand, the trade could merely be part of a hedging program so maybe investors shouldn't start rushing to follow a coattail investment strategy.
The Economy Forecast Agency, a research firm that specializes in long-range financial market forecasts, isn't forecasting the price of oil to hit $100 a barrel through at least January 2021.
It is also important to note that the one trade, although it was notable during Tuesday's trading session, is still tiny compared to the global oil market.
Ole Hansen, head of commodity strategy at Saxo Bank A/S told Bloomberg that the trade represents a "relatively cheap lottery ticket."
"It's clearly not the consensus in the market that we're going to see a return to those prices any time soon," he added.
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