Amateur Betters Put 2-1 Odds On Oil Doubling


Based on pricing from British online broker, punters have placed 2-1 odds that Brent oil will break $147.27 by the end of 2012.

This would be a record high and represent almost a doubling in price from today.

While Ladbrokes is primarily a site for sports betting and mainstream gambling, they’re increasingly adding financial markets products.

One wonders when the regulators will come a-knocking…

Reuters: Ladbrokes spokesman Ciaran O’Brien said it was still a niche product for them, but they were seeing more and more interest from gamblers.

“Most are not professionals or city workers, but are people who are amateur enthusiasts who have an interest in the markets,” O’Brien said. “Volumes are slightly ahead of last year with oil the fourth or fifth biggest market.”

Ladbrokes said the level of interest from financial punters was only higher on some of the world’s biggest stock and currency markets, like Britain’s FTSE 100 or the changing value of sterling and the dollar.

These online betting markets can’t be very efficient, or at least far less efficient than professional financial markets. While they’re too small for investment funds to take advantage of, there might be room for arbitrage by high net worth investors. Just watch out for the trading expenses, also note we don’t vouch for Ladbrokes in any shape or form.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.