S&P vs. crude oil volatility… EIA – Commodity Research Group

March 6, 2018 by Jim Colburn Leave a Comment

In today’s release of the Short Term Energy Outlook, the EIA looks at S&P vol compared with crude oil vol with this nifty chart:

“The VIX, a measure of implied volatility (the market’s expected range of near-term price changes) on S&P 500 index options, closed above the OVX, a measure of implied volatility on crude oil options prices, for four consecutive days in early February. Not only was this the first time since 2008 that the VIX closed above the OVX, but the VIX has only closed above the OVX four other times since the inception of the OVX in 2007 (Figure 2).”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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