IPE Volumes Smash Through Records

The volume of trade recorded at the IPE last month reached a new high, exceeding the previous record by a third. Total traded volume on the IPE reached 2,444,270 lots (almost 2.5 billion barrels), compared to the previous high of 1,831,612 lots (1.8 billion barrels) which was achieved in March 1998. A number of additional records were achieved in March. Brent Crude futures volume reached 112,598 lots on 11 March, breaking the previous record of 105,270 lots set in January this year, then on the following day soared to 131,802 lots. This new record represents just under 132 million barrels of oil, or almost double total world oil production. Open interest for Brent Crude futures also reached new heights. Open interest broke through the 300,000 lots barrier on March 26, and at the end of the month stood at 309,724 lots. Gas Oil futures also enjoyed a boom in activity. Over the month as a whole 660,233 lots (66 million tons) were traded, compared to the previous record set in January 1996 of 526,477 lots. Opec's decision to cut production and the resulting price rise were the main reasons for the increase in activity according to brokers. The price of prompt Brent Crude futures broke through the key USD15/bl level last night, reaching a high of USD15.28/bl. This was the first time Brent Crude had traded above USD15/bl since May last year. Lynton Jones, chief executive of the IPE said "March has been an excellent month for the IPE. Recent price volatility has generated a huge increase in demand for quality hedging tools and our brokers and traders have been able to meet it very well".