Oil Above $110, Volatility Asleep... Something Big Is Brewing
The next oil squeeze?
Brent is pushing above $110, but the market still seems remarkably relaxed about the move. Volatility remains subdued, speculative positioning is far from stretched, and the options market is only beginning to price more aggressive upside scenarios. With geopolitical risks simmering and dealers increasingly short gamma, the ingredients for a potentially explosive move higher are falling into place. Is oil setting up for the next big squeeze?