US Crude Oil Might Reach a Two-Month Low Next Week
On October 18, US crude oil’s implied volatility was 25.8%—almost on par with its 15-day average. The inverse relationship between oil prices and oil’s implied volatility is illustrated in the following graph. Since reaching a 12-year low in February 2016, US crude oil active futures have risen 161.9%. Crude oil’s implied volatility has fallen ~65.7% since February 11, 2016.