Updated vol chart, WTI… – Commodity Research Group

November 23, 2019 by Jim Colburn Leave a Comment

Option volume in WTI options (LO) is down sharply from last year, averaging 129,509, -22.9%, through October… Friday’s volume was only 52,087 as we head into Thanksgiving week… Lack of expected price movement is showing up in options implied volatility as well… The high of 2019 was made on Jan 2, settling at 53%… The low, made in April, was around 22%… The attack on Saudi oil facilities could only get us to 46%.. We are now sitting around 28% with a possible low vol week followed by an OPEC meeting starting on December 5th… The IEA estimates the call on OPEC crude for 2020 to be 1 mbd under current production… Could be an interesting meeting and market reaction…

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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