Supply disruptions ease, oil market bears "rapidly assemble": Brent put option bets surge to unprecedented levels.

Oil traders are piling into options betting on a decline in Brent crude, with bearish wagers surging to unprecedented levels as investors reposition after a sharp rally in recent sessions. Preliminary ICE Futures Europe data showed about 764,000 Brent put options changed hands on Tuesday, the most on record. Much of the activity was concentrated in narrow put spreads, sometimes used to hedge over-the-counter binary trades, as Saudi Arabia seeks to restore flows on a key pipeline and there are signs of some diplomatic progress around reopening the Strait of Hormuz. More than 110,000 December 70/69 puts, 40,000 November 93/92 puts and 38,500 February 70/69 puts traded on the day, accounting for more than half of total volume. November Brent futures settled 1.1% lower at $99.25 a barrel on Tuesday, after coming within a whisker of $110 last week. The latest developments have also reversed bullish signals in several key market gauges. The call skew on the global benchmark is the least bullish since June, reflecting lower costs to hedge against upside price risks. Brent's nine-day relative strength index has also moved out of overbought territory, where it had sat for most of last week.