Oil Volatility Explodes As Markets Brace For A Bigger Shock

Welcome to pure panic

Oil volatility is surging. With OVX at current levels, the market is pricing roughly 4.7% daily moves in crude. That’s not normal volatility, it’s a market bracing for disorder.

Chart 2 shows OVX has only traded higher twice since oil’s “negative dive”, underscoring just how extreme the current move is.