Oil price volatility index hits record high
The Cboe Crude Oil ETF Volatility Index jumped to a record high of 115.9 on Monday as prices fell sharply on prospects of an all-out price war between Saudi Arabia and Russia.
The index measures the market's expectation of 30-day volatility of crude oil prices by applying the VIX methodology to the United States Oil Fund, LP options spanning a wide range of strike prices.
Put simply, markets expect the black gold to remain quite volatile over the next 30 days.
"Things are unlikely to calm down for a while. The OVIX (Vix for the oil market), is its highest inception, including even the 2008 crisis," John Authers, senior editor at Bloomberg tweeted a few minutes before press time.
At press time, WTI is seen trading at $34.40 per barrel, having hit a low of $27.34 on Monday. Meanwhile, a barrel of Brent is currently changing hands at $37.60.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.