Skip to content

Oil’s Wild Gyrations Are Forcing Traders Off the Crude Market

  • Brent oil’s open interest slumps to lowest since 2015
  • Global benchmark is on a record run of daily $5 swings
Updated on

To understand why global benchmark Brent oil jumped and then slumped $40 a barrel in little over two weeks, take a look behind the scenes. 

While the run-up in crude prices was fueled by Russia’s invasion of Ukraine, a black swan event that triggered sanctions and market mayhem, oil’s collapse has been prompted by some position closures as risky trades were reined in amid soaring volatility. Also, some speculators likely took profit after Brent spiked to its highest level since 2008.