All articles tagged with #oil price volatility
Oil jumped to about $115 per barrel after reports the US plans to extend its blockade of Iran’s ports, lifting Brent crude from around $110 as Tehran vowed to disrupt traffic through the Strait of Hormuz, a chokepoint shaping ongoing oil market volatility.
Oil prices have been fluctuating due to escalating tensions between Israel and Iran, with Brent initially surpassing $90 per barrel before falling back to $86 following Tehran's dismissal of the impact of Israeli strikes. The US has allowed its waiver for Venezuela to trade crude to expire and is targeting China's purchases of Iranian oil, while the UAE's sovereign fund is considering a takeover bid for a Spanish energy firm. Additionally, the White House is considering releasing strategic petroleum stocks, Kazakhstan is seeking $150 billion from oil majors, and the US is imposing new offshore decommissioning rules.
Oil traders are cutting their bullish bets on crude oil due to concerns about the economy and new banking sector jitters, leading to extreme volatility in oil prices. Open interest in U.S. crude oil futures is at its lowest in three years, and prices are set for more extreme swings. Speculators have been consistently caught off-guard in the past two months, and many have now opted to stay away. Lower open interest and liquidity in the market is bound to make price swings even more extreme, according to analysts.