Morgan Stanley global oil trading co-head Brendan Ross said the Russia-Ukraine conflict and fighting in the Middle East have driven traders to shorten tenor and pare broad derivatives exposure. Market participants are concentrating positions in near-dated maturities—effectively trading only the next 3-6 months—becoming more selective and risk-focused. That shift toward specific instruments has reduced liquidity in long-dated contracts and amplified liquidity cycles. Ross said the physical/financ

Morgan Stanley global oil trading co-head Brendan Ross said the Russia-Ukraine conflict and fighting in the Middle East have driven traders to shorten tenor and pare broad derivatives exposure. Market participants are concentrating positions in near-dated maturities—effectively trading only the next 3-6 months—becoming more selective and risk-focused. That shift toward specific instruments has reduced liquidity in long-dated contracts and amplified liquidity cycles. Ross said the physical/financial dislocation is concentrated in the refined products market.