Relief. The Energy Report

Market price volatility during the first quarter of 2020 has not been limited to oil markets The recent volatility in oil markets has also coincided with increased volatility in equity markets because the products refined from crude oil are used in many parts of the economy and because the COVID-19-related economic slowdown affects a broad array of commercial activities. This can be measured through implied volatility—an estimate of a security’s expected range of near-term price changes—which can be calculated using price movements of financial options and measured by the VIX index for the Standard and Poor’s (S&P) 500 index and the OVX index for WTI prices. Implied volatility for both the S&P 500 index and WTI are higher than the levels seen during the 2008 financial crisis, which peaked on November 20, 2008, at 80.9 and on December 11, 2008, at 100.4, respectively, compared with 61.7 for the VIX and 170.9 for the OVX as of March 24. Check out the whole report on EIA.GOV.

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Disclaimer: Past results are not necessarily indicative or future results.Investing in futures can involve substantial risk & is not for everyone. Trading foreign exchange also involves a ...

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