Crude Oil’s Implied Volatility Reaches All Time Low Since 1996

Bloomberg reported that crude oil’s volatility, which is a measure of expectations for price swings in the future, has fallen to its lowest level since 1996 as confidence in the growing economy was countered by North America’s surging output.

As quoted in the market news:

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.

Click here to read the full Bloomberg report.