US Crude Oil Could Reach Its 2018 Low Next Week
On November 8, US crude oil’s implied volatility was 30.8%—12.8% above 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 131.5%. Crude oil’s implied volatility has fallen ~59% since February 11, 2016.