Oil prices fall as options expire

Oil futures ended a whipsaw session slightly lower May 15 as the expiration of options played havoc with prices, driving crude near record high levels at times and down by more than $3 a barrel at others. Options let investors bet oil prices will rise or fall in the future. Oil prices can fluctuate widely on days when options expire, analysts said.

Contributing to the volatility, the June crude oil contract expires the week of May 19. Oil prices sometimes trade erratically as investors square positions ahead of a contract expiration.

Light, sweet crude for June delivery fell 10 cents to settle at $124.12 a barrel on the New York Mercantile Exchange after rising as high as $126.64 earlier in the session, and falling as low as $120.75 later in the day. Oil prices reached a trading record of $126.98 a barrel May 13.

—The Associated Press