Analysts dismiss speculation that oil will hit $200 a barrel

SPECULATORS are betting heavily that crude oil will hit $200 a barrel by the year’s end.

Reports out of the US show that options to buy oil for $200 on the New York Mercantile Exchange rose tenfold in the past two months to 5,533 contracts.

That’s a record increase for any similar period, analysts said. The contracts, the cheapest way to speculate in energy markets, appreciated 36% since early December as crude futures reached a record $100.09 on 3 January.