By Adedapo Adesanya

Crude oil was down on Tuesday, with investors keeping a close eye on peace talks to end Russia’s war in Ukraine.

Brent crude futures lost 55 cents or 0.88 per cent to trade at $61.94 a barrel and the US West Texas Intermediate (WTI) crude futures fell by 63 cents or 1.07 per cent to $58.25 a barrel.

Ukrainian President Volodymyr Zelenskiy’s government will share a revised peace plan with the US after talks in London between Zelenskiy and the leaders of France, Germany and Britain. Peace between Ukraine and Russia could lead to the removal of international sanctions on Russian companies and free up restricted oil supply.

This has not stopped Russian offensive as the latest attacks on Ukraine’s energy system cut power access for roughly half of the residents in the Ukrainian capital Kyiv on Tuesday.

Meanwhile, the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban in a bid to reduce Russia’s oil revenue.

Also, concerns about ample supply and a looming decision on US interest rates impacted prices.

The Federal Reserve will announce its policy decision on Wednesday, with markets pricing in an 87 per cent probability of a quarter-point rate reduction. Lower interest rates typically are a positive driver for oil demand given the decrease in borrowing costs.

Yet, some analysts were cautious about how much impact this could have on oil prices for now.

The market also expects an oversupplied 2026 oil market buoyed by supply boost from the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) and other non-OPEC+ countries like the US and Brazil.

The American Petroleum Institute (API) estimated that crude oil inventories in the United States saw a large draw of 4.8 million barrels in the week ending December 5. Crude oil inventories shrank by 2.48 million barrels in the week prior. Crude oil inventories in the United States are so far showing a net increase of just 121,000 barrels for the year.

Gasoline (petrol) inventories saw a sizeable increase of 7 million barrels in the week ending December 5. In the week prior, gasoline inventories grew by 3.14 million barrels. Distillate inventories also rose in the reporting period, gaining 1 million barrels, compared to the week prior’s 2.88-million-barrel build.

Official data from the US Energy Information Agency (EIA) will be released later on Wednesday.

Crypto futures have transitioned from retail playgrounds to institutional boardrooms, offering leveraged bets on digital assets without ownership. In 2025, with the market hitting $1.7 trillion in Bitcoin futures volume in August, institutions like hedge funds and banks are diving in. A CME Bitcoin contract, for instance, controls 5 BTC at $103,092, amplifying a 2% move to 10% returns on margin. This appeal stems from hedging tools, 24/7 liquidity, and regulatory clarity post-SEC approvals. As ETF inflows reach $21 billion year-to-date, crypto futures bridge traditional finance and blockchain. Copy trading lets retail mirror this institutional flow. This article explores the surge and its drivers.

The Mechanics Drawing Institutions to Futures

Crypto futures are contracts to buy or sell assets at future dates, but perpetual versions dominate, with no expiry and funding rates aligning to spot prices. Institutions favor CME’s regulated contracts, like Bitcoin futures at $103,092, for transparency and 50x leverage on margin.

Hedging is a core pull. Banks short BTC futures to offset spot holdings during dips, as in October’s 12% drop. Volume at $1.7 trillion monthly dwarfs spot’s $2 trillion, showing preference for derivatives.

Regulatory nods help. CFTC oversight and ETF launches provide comfort, with $21 billion inflows. Perpetual futures on offshore exchanges offer 100x leverage, but institutions stick to compliant venues.

Institutional Strategies and Market Impact

Institutions use futures for portfolio protection. A $1 billion fund shorts 100 CME contracts at $103,092 to hedge against $10K BTC drops, saving millions in volatility.

Arbitrage thrives too. Funds exploit spot-futures gaps, like 0.5% premiums in high demand, netting 5-10% annualized. Options on futures add layers, with $500 million open interest in BTC calls.

Impact is profound. Institutional volume, 40% of total, stabilizes prices—October’s dip rebounded faster than 2022’s. Yet, 80% of retail traders lose, highlighting the pro edge.

Сopy Trading: Democratizing Institutional Futures Plays

Copy trading brings institutional strategies to retail. Mirror pros with 80% win rates hedging BTC futures at $103,092 support, automating shorts during VIX spikes. Their arbitrage setups teach gap exploitation.

Choose low-drawdown traders (under 10%) with 1+ year records. Diversify 2-3 for balance. Copy trading executes fast in 24/7 markets, capturing 1-2% moves.

It’s not foolproof. 80% of copied accounts lose in volatility. Study trades to understand funding rates, avoiding blind reliance.

Conclusion

Crypto futures’ appeal to institutions in 2025 lies in hedging, arbitrage, and leverage on $1.7 trillion volume, with CME contracts at $103,092 offering regulated access. $21 billion ETF inflows signal mainstreaming, stabilizing prices amid 80% retail losses. Institutions’ 40% volume share protects portfolios, but requires expertise. Copy trading democratizes this, mirroring pros for 5-10% yields. Cap risk at 1-2%, diversify strategies, and trade during peaks. In a maturing market, futures aren’t gambles—they’re essential tools for savvy investors.

By Adedapo Adesanya

The flagship upstream subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, NNPC E&P Limited (NEPL), has achieved a record production level of 355,000 barrels of oil per day, its highest daily output since 1989.

The 36-year high milestone, which was achieved on December 1, marks a significant step forward for Nigeria’s upstream sector and reflects the company’s ongoing transformation anchored on efficiency and discipline.

According to a statement signed by Mr Andy Odeh, NNPC’s chief spokesperson, the figures show genuine transformation with average daily production surging by 52 per cent, rising from 203,000 barrels per day in 2023 to 312,000 in 2025.

“This record growth is no coincidence; it stems from a clear strategy anchored on operational excellence, strong asset management, and structured field development. NEPL’s performance demonstrates that with the right leadership, strengthened systems, and a committed workforce, Nigeria’s upstream sector can overcome years of instability,” the statement reads in part.

This comes as the country targets an ambitious production level of 2 million barrels per day by 2027 and 3 million by 2030, with the statement claiming that, “NEPL’s delivery brings them closer to reality.”

Speaking on the development, Mr Bashir Bayo Ojulari, the Group CEO of NNPC Limited pointed out that the milestone is proof that Nigeria’s energy revival is not a dream; it is already happening.

“By showing its ability to exceed its own production benchmarks, NEPL confirms that the essential building blocks for scaling national output are being firmly established. The achievement signals that the machinery of production—equipment, processes, capabilities, and partnerships—can be driven with commercial discipline to produce real and positive outcomes,” Mr Ojulari stated.

The NNPC helmsman noted that the achievement reinforces confidence nationally and across the global energy landscape, assuring partners and investors that Nigeria is committed to reaffirming its role as a dependable energy supplier.

Also speaking, Mr Udy Ntia, the Executive Vice President of upstream operations at the state oil company, observed that the milestone goes beyond the 355,000 barrels per day figure.

“In a sector where shortcuts can yield short-term wins but long-term damage, NEPL is making a different point: sustainable progress must rest on responsible operations. This ensures that scaling production does not compromise worker safety, community wellbeing, or environmental protection. It reinforces a shift away from extraction at any cost towards sustainable value creation—a core requirement for any modern energy company seeking global relevance,” he added.

Adding his input, Mr Nicolas Foucart, MD, NEPL also noted that NEPL’s record-setting performance mirrors the broader transformation unfolding across NNPC Limited.

“This is a story shaped by leadership that charts a clear course; by partnerships built on alignment and accountability; and by a workforce whose hard work is turning goals into measurable progress. Our people, our processes, and principles are the real engines behind this success. We are building for tomorrow, not just celebrating today.”

“For Nigerians, this accomplishment means far more than increased barrels; it translates into greater national revenue, stronger energy security, and a more resilient economic foundation. NEPL has not only produced more hydrocarbons; it has reignited belief in what Nigeria’s energy sector can achieve with the right systems, culture, and dedication,” he added.