Commodity Trade Mantra

Posts Tagged ‘Crude Oil Volatility Index’

With A Rebound In Oil Prices, Will Drilling Activity Return?

On June 6, Morgan Stanley released a report saying that “all eyes” are on the U.S. to see if drilling will return now that oil prices are back above $50, after having rallied roughly 85% since February. There are a few early signs that drilling is starting to begin again. The oil rig count jumped by nine last week to 325 active oil rigs, the sharpest increase since December 2015.

Oil Fundamentals Could Cause Oil Prices To Fall, Fast

I hope that oil prices increase but cannot find any substantive reason why they should do anything but fall. As market balance reality re-emerges in investor consciousness and the false euphoria of a production freeze recedes, prices should correct to around $30. A little bad economic or political news could send oil prices much lower.

Oil Price Volatility Off The Charts - What Explains The Incredible Volatility?

Oil prices are at their lowest levels in more than a decade, but the daily up & down moves are leaving investors with whip lash. What explains the volatility? What is new is the instability in the financial markets. China’s slowing growth; Emerging market currencies crashed; Fed rate hikes may or may not be forthcoming, etc. This all adds up to a period of incredible volatility.

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