Wild Price Swings Make Oil Futures Too Hot to Handle
- Open interest across oil futures contracts hits 6-year low
- CME, ICE hike margin requirements sharply as volatility rises
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Russia’s invasion of Ukraine has catapulted the oil market into one of the most tumultuous periods it has ever seen -- and pushed some investors to the sidelines.
In two of the four trading sessions this week, Brent crude futures have swung by the most on record -- with intraday swings eclipsing $20 a barrel. In normal times, even a $5 move would see traders balk, and the current volatility is having precisely that effect.