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A dramatic U.S. drone strike kills Iran’s most important general. Tehran vows retribution and oil prices jump almost 5 per cent as traders rush to cover the risk of a Middle East war. Then the selling starts.

It’s a trading pattern that would have been unthinkable a decade ago, but has become increasingly familiar. The threat of conflict loomed over the heart of the global oil market this past week, but the usual panic buying by traders and consumers was met quickly by a wave of U.S. shale drillers grasping the opportunity to lock in prices for future production.

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The sudden price spike was blunted, and when the dust settled the plunge back down was steep.

These trades, known as hedges, combined with a massive expansion of oil stockpiles in Asia and surging U.S. crude exports, are the recipe for a market that’s capable of quickly shrugging off disruptions that until recently were considered nightmare scenarios.