Oil blasts through $110/bbl, as few alternatives seen to Russian supply | Reuters
Oil surged relentlessly beyond $110 a barrel on Wednesday, extending its rally since Russia invaded Ukraine seven days ago, on expectations that the market will remain short of supply for months to comefollowing sanctions on Moscow and a flood of divestment from Russian oil assets by major companies.
The market rallied into the close of trading on heavy volume, with global benchmark Brent crude ending the day at its highest close since June 2014, while U.S. crude's settlement was its highest since May 2011.
The oil rally has been dramatic, with Brent gaining over 15% this week alone as the West responded to Moscow's invasion with numerous sanctions, which have targeted financial transactions and banks, designed to hammer Russia's economy.
While the energy sector was not specifically targeted, the sanctions have hampered exporting capabilities from Russia, whose oil exports account for about 8% of global supply, or 4 million to 5 million barrels per day, more than any nation other than Saudi Arabia.
"It increasingly looks like the market is pricing in a supply disruption to at least part of the nearly 4 million barrels per day of oil that is sold into the U.S. and EU," said Andrew Lipow, president of Lipow Oil Associates in Houston.
Brent crude futures peaked at $113.94 a barrel during the session, before settling at $112.93, up $7.96, or 7.6%.
U.S. West Texas Intermediate (WTI) crude futures hit a high of $112.51 a barrel, and closed $7.19, or 7%, higher at $110.60.
Wednesday 2 March 2022
Oil soars past $110/bbl on growing Russian supply disruptions | Reuters
Oil soars past $110/bbl on growing Russian supply disruptions | Reuters
Oil prices surged beyond $110 per barrel on Wednesday as traders scrambled to seek alternative oil sources due to supply disruptions after sanctions on Russian banks amid the intensifying Ukraine conflict, while U.S. crude inventories fell unexpectedly, underscoring the already tight market.
Brent crude futures hit their highest since June 2014 at $113.94 a barrel, before easing to $109.85 by 10:46 a.m. EST (1546 GMT), up $4.88, or 4.7%.
U.S. West Texas Intermediate (WTI) crude futures jumped more than $9 to $112.51 a barrel, hitting the highest since May 2011 before losing some steam to trade up $4.55, or 4.4%, at $107.96.
"Investors, traders, and politicians alike are scrambling to address the worsening Russia-Ukraine standoff. The initial upward price reaction after the conflict in Ukraine started six days ago is only intensifying," said Rystad Energy analyst Louise Dickson.
Oil prices surged beyond $110 per barrel on Wednesday as traders scrambled to seek alternative oil sources due to supply disruptions after sanctions on Russian banks amid the intensifying Ukraine conflict, while U.S. crude inventories fell unexpectedly, underscoring the already tight market.
Brent crude futures hit their highest since June 2014 at $113.94 a barrel, before easing to $109.85 by 10:46 a.m. EST (1546 GMT), up $4.88, or 4.7%.
U.S. West Texas Intermediate (WTI) crude futures jumped more than $9 to $112.51 a barrel, hitting the highest since May 2011 before losing some steam to trade up $4.55, or 4.4%, at $107.96.
"Investors, traders, and politicians alike are scrambling to address the worsening Russia-Ukraine standoff. The initial upward price reaction after the conflict in Ukraine started six days ago is only intensifying," said Rystad Energy analyst Louise Dickson.
OPEC+ swerves Ukraine crisis and sticks to oil output plans | Reuters
OPEC+ swerves Ukraine crisis and sticks to oil output plans | Reuters
OPEC+ oil producers agreed on Wednesday to stick to their plans for a modest output rise in April, ignoring the Ukraine crisis during their talks and snubbing calls from consumers for more crude even as crude prices rocketed higher.
Oil prices shot above $110 a barrel this week, hitting peaks not seen since 2014, as Western sanctions tightened on Moscow over its invasion of Ukraine and disrupted oil sales from Russia, the world's second-largest oil exporter.
By 1315 GMT, benchmark Brent was above $113.
The Western measures have deterred many buyers of Russian crude and even caused problems for exports from Russia's neighbour, Kazakhstan, another member of OPEC+.
The group comprising the Organization of the Petroleum Exporting Countries, Russia and allied producers has been hiking output by 400,000 barrels per day (bpd) each month since August as OPEC+ unwinds cuts made when the pandemic slashed demand.
OPEC+ oil producers agreed on Wednesday to stick to their plans for a modest output rise in April, ignoring the Ukraine crisis during their talks and snubbing calls from consumers for more crude even as crude prices rocketed higher.
Oil prices shot above $110 a barrel this week, hitting peaks not seen since 2014, as Western sanctions tightened on Moscow over its invasion of Ukraine and disrupted oil sales from Russia, the world's second-largest oil exporter.
By 1315 GMT, benchmark Brent was above $113.
The Western measures have deterred many buyers of Russian crude and even caused problems for exports from Russia's neighbour, Kazakhstan, another member of OPEC+.
The group comprising the Organization of the Petroleum Exporting Countries, Russia and allied producers has been hiking output by 400,000 barrels per day (bpd) each month since August as OPEC+ unwinds cuts made when the pandemic slashed demand.
#Dubai gains over 2%; #Saudi Aramco hits record high | Reuters
Dubai gains over 2%; Saudi Aramco hits record high | Reuters
Major Gulf bourses jumped on Wednesday with Dubai's main index posting its best day in over three months as oil prices rocketed past $110 a barrel on worries over the impact of aggressive sanctions against Russia for invading Ukraine.
Oil prices surged to $113.02 and global stocks came under renewed pressure.
OPEC+ oil producers meeting on Wednesday did not plan to accelerate output rises, according to a draft deal seen by Reuters, as Saudi Arabia and the United Arab Emirates recommit to a deal with Russia even as crude prices shoot higher. read more
Dubai's main index (.DFMGI) surged 2.1% to mark its best day since Nov. 15.
Dubai Islamic Bank (DISB.DU) rose 4.7% after shareholders approved its annual cash dividend.
"The Dubai stock market continues to rise as investors take into account the gradual improvements in the sanitary conditions and the strong fundamentals," said Eman AlAyyaf, CEO of EA Trading.
Higher oil prices also helped sentiment in Abu Dhabi and Saudi Arabia, AlAyyaf added.
In Abu Dhabi, the index (.FTFADGI) climbed 1.7% in its fourth straight day of gains.
Shares of Abu Dhabi National Energy Company (TAQA.AD) gained 3.3% after its board proposed a special cash dividend.
Saudi Arabia's benchmark index (.TASI) ended flat with gains in energy stocks offset by losses in financials.
Oil giant Saudi Aramco (2222.SE) jumped nearly 4% to hit a record high of 4.05 riyals.
The Qatari index (.QSI) gained 1.2%, boosted by industrials and real estate stocks.
Major Gulf bourses jumped on Wednesday with Dubai's main index posting its best day in over three months as oil prices rocketed past $110 a barrel on worries over the impact of aggressive sanctions against Russia for invading Ukraine.
Oil prices surged to $113.02 and global stocks came under renewed pressure.
OPEC+ oil producers meeting on Wednesday did not plan to accelerate output rises, according to a draft deal seen by Reuters, as Saudi Arabia and the United Arab Emirates recommit to a deal with Russia even as crude prices shoot higher. read more
Dubai's main index (.DFMGI) surged 2.1% to mark its best day since Nov. 15.
Dubai Islamic Bank (DISB.DU) rose 4.7% after shareholders approved its annual cash dividend.
"The Dubai stock market continues to rise as investors take into account the gradual improvements in the sanitary conditions and the strong fundamentals," said Eman AlAyyaf, CEO of EA Trading.
Higher oil prices also helped sentiment in Abu Dhabi and Saudi Arabia, AlAyyaf added.
In Abu Dhabi, the index (.FTFADGI) climbed 1.7% in its fourth straight day of gains.
Shares of Abu Dhabi National Energy Company (TAQA.AD) gained 3.3% after its board proposed a special cash dividend.
Saudi Arabia's benchmark index (.TASI) ended flat with gains in energy stocks offset by losses in financials.
Oil giant Saudi Aramco (2222.SE) jumped nearly 4% to hit a record high of 4.05 riyals.
The Qatari index (.QSI) gained 1.2%, boosted by industrials and real estate stocks.
Gulf IPOs Plow Ahead as Other Regions Go Quiet Amid Volatility - Bloomberg
Gulf IPOs Plow Ahead as Other Regions Go Quiet Amid Volatility - Bloomberg
Initial public offerings in the Gulf are proving resilient to the volatility hurting deals in other markets, as high oil prices, stable economies and abundant liquidity fuel activity.
Pharmacy retail chain Nahdi Medical Co. gathered enough demand to cover what is set to be Saudi Arabia’s biggest IPO since oil giant Aramco within hours of opening its books, Bloomberg News reported. In Dubai, the road-toll collection system and utility Dubai Electricity & Water Authority are also gearing up for large listings.
No IPO plans in the region have been derailed by market volatility so far, while appetite for listings in Europe, the U.S. and Asia has all but dried up.
Russia’s invasion of Ukraine has effectively shut IPO markets, exacerbating an already slow start to the year. Several companies pulled deals, while those that went ahead had to temper valuation expectations as equity benchmarks in Europe, Asia and the U.S. sagged. The Gulf is a rare exception, as surging local stock markets on the back of soaring oil prices support dealflow.
Initial public offerings in the Gulf are proving resilient to the volatility hurting deals in other markets, as high oil prices, stable economies and abundant liquidity fuel activity.
Pharmacy retail chain Nahdi Medical Co. gathered enough demand to cover what is set to be Saudi Arabia’s biggest IPO since oil giant Aramco within hours of opening its books, Bloomberg News reported. In Dubai, the road-toll collection system and utility Dubai Electricity & Water Authority are also gearing up for large listings.
No IPO plans in the region have been derailed by market volatility so far, while appetite for listings in Europe, the U.S. and Asia has all but dried up.
Russia’s invasion of Ukraine has effectively shut IPO markets, exacerbating an already slow start to the year. Several companies pulled deals, while those that went ahead had to temper valuation expectations as equity benchmarks in Europe, Asia and the U.S. sagged. The Gulf is a rare exception, as surging local stock markets on the back of soaring oil prices support dealflow.
Oil spikes as Russian supply disruptions increase amid sanctions | Reuters
Oil spikes as Russian supply disruptions increase amid sanctions | Reuters
Oil prices surged on Wednesday as supply disruptions mounted following sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market.
Brent crude futures rose by more than $8, touching a peak of $113.02 a barrel, the highest since June 2014, before easing to $111.53, up by $6.56 or 6.3% by 0950 GMT.
U.S. West Texas Intermediate (WTI) crude futures also jumped more than $8 a barrel, hitting the highest since August 2013 before losing some steam to trade up $6.39 or 6.2% to $109.80 a barrel.
"Due to limited diversification options, any disruption to Russia's energy exports will result in another energy crisis in Europe," said Kaho Yu, principal Asia analyst at risk consultancy Verisk Maplecroft.
Oil prices surged on Wednesday as supply disruptions mounted following sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market.
Brent crude futures rose by more than $8, touching a peak of $113.02 a barrel, the highest since June 2014, before easing to $111.53, up by $6.56 or 6.3% by 0950 GMT.
U.S. West Texas Intermediate (WTI) crude futures also jumped more than $8 a barrel, hitting the highest since August 2013 before losing some steam to trade up $6.39 or 6.2% to $109.80 a barrel.
"Due to limited diversification options, any disruption to Russia's energy exports will result in another energy crisis in Europe," said Kaho Yu, principal Asia analyst at risk consultancy Verisk Maplecroft.
Shuaa lists $100m Spac on Nasdaq New York
Shuaa lists $100m Spac on Nasdaq New York
Dubai-based investment bank Shuaa Capital launched a $100 million initial public offering of the first of its three planned special purpose acquisition companies on Nasdaq New York on Wednesday.
The company listed 10 million units of Shuaa Partners Acquisition Corp I at a price of $10 per unit, and the Spac will start trading under the ticker symbol 'SHUAU' from March 2, Shuaa said in a statement to the Dubai Financial Market, where its shares trade.
Each unit issued in the IPO consists of one Class A ordinary share and one-half of a redeemable warrant, where each whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 after the consummation of business combination. Only whole warrants will be exercisable.
“Following Shuaa's participation in the Anghami de-Spac transaction, we are excited to announce the launch of our own Spac vehicle, which will be focused on technology and/or tech-enabled financial services businesses based out of the Middle East, North Africa and Turkey region," said Fawad Khan, managing director and head of investment banking at Shuaa and chief executive of Shuaa Partners Acquisition Corp I.
Dubai-based investment bank Shuaa Capital launched a $100 million initial public offering of the first of its three planned special purpose acquisition companies on Nasdaq New York on Wednesday.
The company listed 10 million units of Shuaa Partners Acquisition Corp I at a price of $10 per unit, and the Spac will start trading under the ticker symbol 'SHUAU' from March 2, Shuaa said in a statement to the Dubai Financial Market, where its shares trade.
Each unit issued in the IPO consists of one Class A ordinary share and one-half of a redeemable warrant, where each whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 after the consummation of business combination. Only whole warrants will be exercisable.
“Following Shuaa's participation in the Anghami de-Spac transaction, we are excited to announce the launch of our own Spac vehicle, which will be focused on technology and/or tech-enabled financial services businesses based out of the Middle East, North Africa and Turkey region," said Fawad Khan, managing director and head of investment banking at Shuaa and chief executive of Shuaa Partners Acquisition Corp I.
OPEC+ Sits on Market Sideline as Russian Invasion Sets Price - Bloomberg
OPEC+ Sits on Market Sideline as Russian Invasion Sets Price - Bloomberg
OPEC+ ministers gather on Wednesday in the unusual position of being oil-market observers, as the Russian invasion of Ukraine and a release of strategic fuel stocks by major consumers set the market’s agenda.
The group is widely expected to stick to its existing plan and ratify another supply hike of 400,000 barrels a day for April, even as the shockwaves from Russia’s military aggression send crude soaring.
While the invasion hasn’t prompted Western sanctions on Russian energy exports, there are growing signs that reluctance among traders and shipowners to handle the country’s oil could affect flows. Russia’s Urals crude was offered for sale at a record discount but found no bidders.
Riyadh has come under pressure from the U.S. at previous meetings to raise output faster, but consumers are now taking matters into their own hands. The International Energy Agency, which represents major industrialized economies, said on Tuesday that it will deploy 60 million barrels from emergency oil stockpiles around the world.
OPEC+ ministers gather on Wednesday in the unusual position of being oil-market observers, as the Russian invasion of Ukraine and a release of strategic fuel stocks by major consumers set the market’s agenda.
The group is widely expected to stick to its existing plan and ratify another supply hike of 400,000 barrels a day for April, even as the shockwaves from Russia’s military aggression send crude soaring.
While the invasion hasn’t prompted Western sanctions on Russian energy exports, there are growing signs that reluctance among traders and shipowners to handle the country’s oil could affect flows. Russia’s Urals crude was offered for sale at a record discount but found no bidders.
Riyadh has come under pressure from the U.S. at previous meetings to raise output faster, but consumers are now taking matters into their own hands. The International Energy Agency, which represents major industrialized economies, said on Tuesday that it will deploy 60 million barrels from emergency oil stockpiles around the world.
#AbuDhabi TAQA proposes special dividend of $599mln | ZAWYA MENA Edition
Abu Dhabi TAQA proposes special dividend of $599mln | ZAWYA MENA Edition
Abu Dhabi National Energy Co., also known as TAQA, on Wednesday said its board of directors approved a special dividend payment of 2.2 billion dirhams ($599 million), taking the total dividend payments for 2021 to 5.3 billion dirhams.
This comes in addition to the 1.9 billion dirhams (1.65 fils per share) already paid in quarterly dividends, TAQA said in a bourse filing on Abu Dhabi Securities Exchange.
The increase in dividend reflects the strong financial performance in 2021, the company said.
In February, TAQA said full year 2021 net profit more than doubled to 6 billion dirhams, underpinned by its utilities business and boosted by the strong recovery in commodity prices.
The special dividend is subject to shareholder approval at the annual general meeting, scheduled for March 15.
Abu Dhabi National Energy Co., also known as TAQA, on Wednesday said its board of directors approved a special dividend payment of 2.2 billion dirhams ($599 million), taking the total dividend payments for 2021 to 5.3 billion dirhams.
This comes in addition to the 1.9 billion dirhams (1.65 fils per share) already paid in quarterly dividends, TAQA said in a bourse filing on Abu Dhabi Securities Exchange.
The increase in dividend reflects the strong financial performance in 2021, the company said.
In February, TAQA said full year 2021 net profit more than doubled to 6 billion dirhams, underpinned by its utilities business and boosted by the strong recovery in commodity prices.
The special dividend is subject to shareholder approval at the annual general meeting, scheduled for March 15.
Oil markets hit multiple milestones after Russia sanctions | Reuters
Oil markets hit multiple milestones after Russia sanctions | Reuters
Oil benchmarks are hitting multiple price and spread milestones across several key markets as the fallout from severe sanctions on key exporter Russia sows confusion and panic among global crude oil traders, shipping firms and importers.
The oil industry has been gripped by acute risk aversion in the finance and shipping sectors after several nations including the United States sanctioned multiple Russian entities following Russia's invasion of Ukraine, though Washington has explicitly exempted energy products from the Russian measures. read more
Brent crude topped $112 a barrel on Wednesday, the highest since 2014, shrugging off news that several developed countries plan to release a record 60 million barrels of strategic petroleum reserves to cool prices. read more
Crude oil market milestone mayhem
The price spread for Brent crude delivered between now and in 12 months is at $21.54 a barrel, the steepest on record, while Brent's premium to Dubai - the price spread between sweet and sour grades - hit an all-time high of $12.93 a barrel on Wednesday, a trader said.
Oil benchmarks are hitting multiple price and spread milestones across several key markets as the fallout from severe sanctions on key exporter Russia sows confusion and panic among global crude oil traders, shipping firms and importers.
The oil industry has been gripped by acute risk aversion in the finance and shipping sectors after several nations including the United States sanctioned multiple Russian entities following Russia's invasion of Ukraine, though Washington has explicitly exempted energy products from the Russian measures. read more
Brent crude topped $112 a barrel on Wednesday, the highest since 2014, shrugging off news that several developed countries plan to release a record 60 million barrels of strategic petroleum reserves to cool prices. read more
Crude oil market milestone mayhem
The price spread for Brent crude delivered between now and in 12 months is at $21.54 a barrel, the steepest on record, while Brent's premium to Dubai - the price spread between sweet and sour grades - hit an all-time high of $12.93 a barrel on Wednesday, a trader said.
EXCLUSIVE #UAE's Mashreqbank halts Russian bank loans over credit concerns -sources | Reuters
EXCLUSIVE UAE's Mashreqbank halts Russian bank loans over credit concerns -sources | Reuters
Dubai's Mashreqbank (MASB.DU) has stopped lending to Russian banks and is reviewing its existing exposure to the country as a result of heightened risks following Moscow's invasion of Ukraine, two sources familiar with the matter told Reuters.
The move is one of the first reported instances of a bank in the Middle East halting ties to Russia and underscores growing global nervousness about falling foul of Western sanctions.
Mashreqbank declined to comment on the move, which comes as banks around the world wind down ties with Russian lenders after a spate of new sanctions announced by the United States, Britain, the European Union and Canada, including blocking access to the SWIFT international payment system for some banks.
Russian financial institutions (FIs) were part of the emerging market loan portfolio that Mashreqbank had grown in recent years to expand beyond the Middle East, the sources said.
Dubai's Mashreqbank (MASB.DU) has stopped lending to Russian banks and is reviewing its existing exposure to the country as a result of heightened risks following Moscow's invasion of Ukraine, two sources familiar with the matter told Reuters.
The move is one of the first reported instances of a bank in the Middle East halting ties to Russia and underscores growing global nervousness about falling foul of Western sanctions.
Mashreqbank declined to comment on the move, which comes as banks around the world wind down ties with Russian lenders after a spate of new sanctions announced by the United States, Britain, the European Union and Canada, including blocking access to the SWIFT international payment system for some banks.
Russian financial institutions (FIs) were part of the emerging market loan portfolio that Mashreqbank had grown in recent years to expand beyond the Middle East, the sources said.
Gulf stocks rise as oil zooms past $110 | Reuters
Gulf stocks rise as oil zooms past $110 | Reuters
Middle East stock markets rose on Wednesday as oil prices skyrocketed past $110 a barrel on worries over the impact of aggressive sanctions against Russia for invading Ukraine.
Oil prices surged to seven-year highs as supply disruption fears mounted following hefty sanctions on Russian banks, while traders scrambled to seek alternative oil sources in an already tight market.
Top oil exporter Saudi Arabia may sharply hike prices of crude for Asia in April, trade sources said on Wednesday, with differentials for most grades hitting all-time highs. read more
Meanwhile, the Organization of the Petroleum Exporting Countries, Russia and allies, together known as OPEC+, is due to meet later in the day, where they are expected to stick to plans of adding 400,000 barrels per day of supply each month.
Energy-heavy Saudi Arabia's benchmark index (.TASI) rose 0.5%, with oil giant Saudi Aramco (2222.SE) up 1.8%.
In Abu Dhabi, the index (.FTFADGI) climbed 1.2%.
Shares of Abu Dhabi National Energy Company (TAQA.AD) gained 2.5% after its board proposed a special cash dividend.
Dubai's main index (.DFMGI) edged up marginally.
Dubai Islamic Bank (DISB.DU) rose 0.6% after shareholders approved its annual cash dividend.
The Qatari index (.QSI) gained 0.3%, boosted by industrials and real estate stocks.
Middle East stock markets rose on Wednesday as oil prices skyrocketed past $110 a barrel on worries over the impact of aggressive sanctions against Russia for invading Ukraine.
Oil prices surged to seven-year highs as supply disruption fears mounted following hefty sanctions on Russian banks, while traders scrambled to seek alternative oil sources in an already tight market.
Top oil exporter Saudi Arabia may sharply hike prices of crude for Asia in April, trade sources said on Wednesday, with differentials for most grades hitting all-time highs. read more
Meanwhile, the Organization of the Petroleum Exporting Countries, Russia and allies, together known as OPEC+, is due to meet later in the day, where they are expected to stick to plans of adding 400,000 barrels per day of supply each month.
Energy-heavy Saudi Arabia's benchmark index (.TASI) rose 0.5%, with oil giant Saudi Aramco (2222.SE) up 1.8%.
In Abu Dhabi, the index (.FTFADGI) climbed 1.2%.
Shares of Abu Dhabi National Energy Company (TAQA.AD) gained 2.5% after its board proposed a special cash dividend.
Dubai's main index (.DFMGI) edged up marginally.
Dubai Islamic Bank (DISB.DU) rose 0.6% after shareholders approved its annual cash dividend.
The Qatari index (.QSI) gained 0.3%, boosted by industrials and real estate stocks.
Oil spikes as Russian supply concerns increase amid sanctions | Reuters
Oil spikes as Russian supply concerns increase amid sanctions | Reuters
Oil prices surged on Wednesday as supply disruption fears mounted following hefty sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market.
Brent crude futures rose by as much as $8 and touched as high as $113.02 a barrel, the highest since June 2014, before easing to $111.75 at 0804 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up $7.24, or 7%, to $110.67 a barrel, after earlier hitting the highest since August 2013.
The backwardation in the Brent futures contract, when prompt prices exceed later dated supply, surged to the highest ever according to data going back to 2004. The premium of the first-month Brent future to the sixth-month contract rose to as much as $18.55 a barrel.
"Trade disruptions are starting to get people's attention," said Westpac economist Justin Smirk.
Oil prices surged on Wednesday as supply disruption fears mounted following hefty sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market.
Brent crude futures rose by as much as $8 and touched as high as $113.02 a barrel, the highest since June 2014, before easing to $111.75 at 0804 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up $7.24, or 7%, to $110.67 a barrel, after earlier hitting the highest since August 2013.
The backwardation in the Brent futures contract, when prompt prices exceed later dated supply, surged to the highest ever according to data going back to 2004. The premium of the first-month Brent future to the sixth-month contract rose to as much as $18.55 a barrel.
"Trade disruptions are starting to get people's attention," said Westpac economist Justin Smirk.