Crude Oil’s Implied Volatility Falls to Lowest Since 1996
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Implied volatility in crude oil, a measure of expectations for future price swings, eased to its lowest level in 17 years as growing confidence in the global economy was balanced by surging output in North America.
The implied volatility for U.S. West Texas Intermediate crude on the New York Mercantile Exchange was at 21.7 percent on Jan. 18, based on data for the rolling second-month options contract. That’s the lowest since a level of 21.2 percent was reached on Jan. 9, 1996.