Oil traded above $60 a barrel in London amid the highest volatility in more than three years on speculation that Saudi Arabia , the largest crude exporter, is signaling confidence that prices will rally. Brent futures swung between gains and losses. Saudi Arabia’s assumption of oil at $80 a barrel next year is sending a message that the government expects a price rebound, according to John Sfakianakis, a former economic adviser to the kingdom’s finance ministry . Implied volatility for at-the-money options this week increased to the highest since October 2011, data compiled by Bloomberg show. Oil has slumped 46 percent this year, poised for the biggest drop since 2008, as the Organization of Petroleum Exporting Countries resisted supply cuts to defend market share while the highest U.S. production in three decades exacerbated a global glut. Crude prices are “fair” at about $70 to $80 a barrel, Iraq ’s […]