Oil futures prices volatility in oil futures prices

Volatility in oil futures prices remains elevated, with implied moves of 2.8% weekly. This is attracting short-term tactical trades from hedge funds. Russia was advocating for a modest output increase, the same as in October, to avoid pressuring oil prices and because it would struggle to raise output owing to sanctions over its war in Ukraine, two sources said this week. Andy Lipow, a Houston analyst covering oil markets for 45 years, said countries are not always rational actors and that he wouldn’t be surprised if Tehran lashed out for political or emotional reasons. Oil futures prices held firm despite weaker equity indices, signaling decoupled risk sentiment. This resilience may attract portfolio managers seeking commodity hedges.