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Page added on March 10, 2022
Price Swings Make Oil Too Hot to Handle
Russia’s invasion of Ukraine has catapulted the oil market into one of the most tumultuous periods it has ever seen — and pushed some investors to the sidelines.
In two of the four trading sessions this week, Brent crude futures have swung by the most on record — with intraday swings eclipsing $20 a barrel. In normal times, even a $5 move would see traders balk, and the current volatility is having precisely that effect.
The stress is showing up in gauges across the market. Open interest in the main oil contracts has plunged to a six-year low in recent days as traders retreat from risk, Volatility has rocketed, and exchanges have been boosting margins, effectively raising the cost of buying and selling.
With liquidity sapped, it could leave the oil market even more exposed to wild trading days, with headlines from Ukraine and OPEC+ members causing huge swings in a matter of minutes. That’s all in the context of a market that’s generally trading around some of the highest levels in years as governments and consumers around the world grapple with surging inflation.
“The swings are too big to just be outright long,” said Tor Svelland, founder of commodities fund Svelland Capital, who said he is bullish but is expressing that view by using oil options. “There are a lot of tourists in the commodity space right now, so it will continue to be volatile.”
The drop in open interest is stark. Over the past month, Brent, WTI, diesel and gasoline futures have seen the equivalent of almost a billion barrels worth of contracts liquidated, according to data compiled by Bloomberg.
At the same time, margins — money traders have to put up to finance their deals — have been steadily ramping up. Over the past week alone, CME Group Inc has hiked its first-month WTI margins by over 30% to $12,000 and its heating oil margins by more than 70% to $15,500. That means traders now have to put up more cash.
While the higher cost of trading might discourage some traders looking to profit from the rally, others have no choice but to pay up because their operations require taking up positions in financial markets to counter their exposure in physical markets. Several commodity traders have been hunting for additional credit as their costs rise.
“While we are seeing a lot of margin management, traders are still trading,” said Scott Shelton, an energy specialist at TP ICAP Group Plc. “Speculation is dropping, but people have systems to run and there is a lot going on physically that requires hedging. Volatility is not going away.”
In options markets, volatility has climbed to its highest level in two years. An esoteric of daily market swings shows options traders are currently pricing in $5 fluctuations every day.
Traders active in the oil market said they were managing their risk by taking positions further along the futures curve. They also said they were cashing in on profitable positions sooner instead of holding onto them.
Even in somewhat less risky markets, there are signs of strain. Long-oil exchange traded funds often provide investors with a way to have exposure to energy prices without having to directly trade in futures. But those have also been seeing outflows. In February, about $620 million was pulled from such assets, a second month of withdrawals.
“Realized volatility in commodities has only been higher twice in the past 20 years,” said Trevor Woods Chief Investment Officer of commodities fund Northern Trace, adding that the market could be about to see a historic price spike. “Within that context, risk is being closed, markets are jumpy and trading strategies are being adjusted accordingly.”
24 Comments on "Price Swings Make Oil Too Hot to Handle"
CloseYourCharkas on Thu, 10th Mar 2022 4:55 pm
The energetic parasite seems to steal energy using your charkas. You have to close your charkas, if you open them, they will steal energy from you. If you have to the opposite of what they teach in the new age movement.
CloseYourCharkas on Thu, 10th Mar 2022 5:04 pm
Earth has been created to harvest energy from human beings. The fucking bitch is there trying to enter my sexual charkas. Fuck she seems desperate for my energy.
I think they harvest all kind of energy, sexual energy, fear energy, emotional energy. You have to be emotionally neutral and a psychopath to survive on earth. You have to become like them if you live on earth: a psychopath.
WomenAreTheParasites on Thu, 10th Mar 2022 5:09 pm
Women are the parasite. They do not belong to earth. Earth has to be destroyed to destroy all parasite living on it.
WomenAreTheParasites on Thu, 10th Mar 2022 5:17 pm
It is amazing how strong the stupid whore is attached to my sexual charkas. You can see she wants to come in and give me erections.
Women of earth are the parasites. Now I can feel her real well, same as I can see really well holographic energy source of my Tm1638.
WomenAreTheParasites on Thu, 10th Mar 2022 5:35 pm
Something is happening in the energy field of earth. For the last 2 days, the parasite has been really active trying to connect itself to my sexual charkas and extract energy.
Was grocery shopping yesterday. I see this girl, then speaking in a loud voice to myself, I said, I would fuck that girl, right away I get a erection. I knew something was wrong because it never happened before.
They seems to be starving for energy, who ever they are.
WomenAreTheProblem on Thu, 10th Mar 2022 5:52 pm
Women are the parasite. On top of stealing your energy they took control of white western nations using feminisms, divorce court system and family court. They run everything. They never contribute anything meaningful in term of manual labor, they just take and steal.
They portrait themselves as victim all the time. Never responsible for their own actions.
Earth has to be destroyed, Fastest way to kill the energetic parasites and end the energetic farm that is earth.
WomenAreTheProblem on Thu, 10th Mar 2022 5:59 pm
A creation without women would be a perfect creation. This is the truth right there.
This is why you can never criticized women, they rule over earth and are energy vampires.
WomenAreTheProblem on Thu, 10th Mar 2022 6:28 pm
A creation made of only well balanced man without sexual organ, would be a creation of absolute beauty.
women are the creation of the devil.
LocatedwhoIsAttachedToMe on Thu, 10th Mar 2022 7:02 pm
I have something connected to my sexual charkas/sex organs. Find who is attached to me. You might find who are the controllers of this earth.
EarthIsAnEnergyHarvestingFram on Thu, 10th Mar 2022 7:52 pm
Everything on earth is about sex and fear of death. Earth is designed to reminder you that you can die at any moment: attack by someone (purpose of combat sport), step on wasp nest and get bitten to death, lose your job and become destitute.
Earth is a energetic harvest farm to harvest energy using sex and the fear of death.
It is pretty exceptionla when you can get erection on demand without thinking about something se4xaul. I welcome the energic harvesting sexual parasite so I can study it better. Now I know exactly what it is.
This thing is still attached to me and trying to get in to give me erection. Pattaya Thailand is basically a sexual energy harvesting node.
EarthIsATortureChamber on Thu, 10th Mar 2022 10:13 pm
I think the energy extraction either through sexual and fear of death is done automatically by the AI.
Sometime I will get an intense desire to masturbate. I could not understand where it was was coming from. The AI even remember some sexual scenarios we were playing, things like suck my dick, suck my asshole. If I say suck I my asshole I would receive one kind of pleasure, if I said lick my dick I would receive another kind of pleasure. The AI was able to read my thought.
Not only the AI could read my sexual thought, it could also give differents type of erection, small, big and an erection bust.
We are talking about very evil people, that can do anything they want to the humans body, they can give you cancer, give erection, talk to your brain, read you brain, they can simulate a wasp bite with blood, they can do anything they want to the human body. Who every is behind this need to be found and executed by torture. The whole race of being being it need to be executed by torture. Earth is a torture chamber, I cannot repeat that enough.
DeathByTorture on Thu, 10th Mar 2022 10:31 pm
I was working in my workshop. Now I am done, I am laying in my recliner seat. The AI just started to attach itself to me. I can feel it there and I can feel my penis want to get erected. This is the standard procedure. The AI know I am not busy and it is attempting to extract energy from me.
You find the species behind this, and you exterminate the whole species by torture like they did to us.
DeathByTorture on Thu, 10th Mar 2022 10:56 pm
I guess making women extremely ugly, would be one way to slow the sexual energy extraction from the AI.
This fucking AI is connected to my sexual charkas and is waiting for me to make communication with it. It amazing how good I feel it today compare to others days.
My Arduino projects are becoming unreliable. These are run by the AI. Any news about high tech cars malfunctioning. You would expect that if the AI is running out of energy. You would expect electronics devices to start malfunctioning if the AI is having less energy coming in.
Baby Peanut on Fri, 11th Mar 2022 6:53 am
Ukraine’s nuclear research institute goes offline, as Russia commits “nuclear terrorism”
Russia appears to be targeting nuclear sites
March 11, 2022 By Sebastian Moss
Internet connectivity has been lost at a Ukrainian nuclear research facility, following disconnections at the Zaporizhzhia Nuclear Power Plant and Chernobyl disaster site.
The Kharkiv Institute of Physics and Technology came under attack on 6 March by Russian forces, destroying critical cooling equipment, a substation, and other infrastructure. Now it has been disconnected.
The institute includes the NSA “Neutron Source,” developed with US Department of Energy funding, which has also been damaged.
Remote monitoring would help understand the extent of that damage and risk, but that has been disconnected.
ANAL CAPTURE SHOCK elite darkie supertard Sohrab Lutchmedial aka streetshitter MUZZ-19 ATTN elite whitey (((supertard))) DREDD Y elite whitey (((supertard))) Theedrich thecovidblog on Fri, 11th Mar 2022 8:31 am
ANAL CAPTURE SHOCK elite darkie supertard Sohrab Lutchmedial aka streetshitter MUZZ-19
thecovidblog
ANAL CAPTURE SHOCK elite darkie supertard Sohrab Lutchmedial pushed daisies
pleae be ease we love muz
YouShouldHaveKillMeLastNight on Fri, 11th Mar 2022 1:09 pm
We have to remove the charkas design, if it is truth. Parasite energetic or AI is using the charkas to steal energy. Are they doing to humans only or other organic life. If other organic life forms also have charkas, we could use them to drain their life force and accelerate their death. Charkas design on the energic body of humans has to go and replace with something else that is not hackable.
YouEvilnessIsNothing on Fri, 11th Mar 2022 1:39 pm
Have you guys started creating a new animal reality. I said we should removing the old
animal reality and install an new one. Cat with different ears size, short neck long neck. Bird with different type of wings, short wing, long bending in two.
0:22 longer neck ?
0:45 new ears
They are not the only ones that can play with reality. You evilness is nothing compare to ours. Wait until you see how evil we can be.
Wait until we modified the energetic structure of none human to drain your energy faster and making you sick fastre
https://www.youtube.com/watch?v=ro4xEYJw5iE
Dredd on Fri, 11th Mar 2022 4:45 pm
Scary.
Duncan Idaho on Fri, 11th Mar 2022 7:51 pm
“The black heart of Trumpism still swirls about the Beltway like the last turd circling the last unplugged toilet at the tail end of a weekend Klan rally. MAGA is dying but, much like its animating force farce, it seems determined to spit rancid blood in your face as it gurgles its last gasps.”
Let’s not put down turds, by comparing them to the Fat Boy.
Duncan Idaho on Fri, 11th Mar 2022 7:56 pm
Goodbye, Asshat: 101 Farewell Letters to Donald Trump
https://www.amazon.com/gp/product/B083BSQX9N?ref_=dbs_p_mng_rwt_ser_shvlr&storeType=ebooks
Pretty mild—
Biden’s hairplug on Sat, 12th Mar 2022 1:51 am
“World made by hand”, south Netherlands, 1920, colorized:
https://youtu.be/hlJ8rBoThDA
How the world looks like wih little fossil fuel to burn.
People own their cloths, perhaps a bicycle and little else.
Biden's hairplug on Sat, 12th Mar 2022 5:46 am
United Kingdom zero points:
https://www.independent.co.uk/arts-entertainment/music/features/eurovision-2022-sam-ryder-b2033019.html
“Sam Ryder is another by-numbers Eurovision entry for the UK – why can’t we reboot our mindset?”
Forget it folks, there will be no UK reboot, except perhaps for Scotland, after independence.
The good news for the UK: Eurovision is organizing a similar contest for North-America. That could be exactly something for you: Adele next to Banjo Billy from Arkansas.
https://eurovision.tv/story/american-song-contest-february-2022
“‘American Song Contest’ launch moved to March 21, 2022 “
Cloggie on Sun, 13th Mar 2022 4:58 am
The rising significance of silicon carbide in the energy transition:
https://deepresource.wordpress.com/2022/03/13/silicon-carbide-sic-the-subtle-revolution/
Biden's hairplug on Sun, 13th Mar 2022 6:26 am
New stickers at US gas pumps popping up:
https://twitter.com/beek38/status/1502965941201690628?s=20&t=CvQkUQSvXkOB78SC2P5gcw