Oil: Volatile swings on war headlines – Rabobank
Finance Oil: Volatile swings on war headlines – Rabobank Rabobanks Senior Economist Maartje Wijffelaars highlights extreme volatility in Oil, with Brent dropping to $93 per barrel before spiking above $102 as shifting war headlines from Washington drive sentiment. He notes thin liquidity, algorithmic trading dominance and labels the recent fall from around $115 in Brent as premature, underlining ongoing risks around the Strait of Hormuz. Brent swings on war and liquidity “Oil markets are experiencing extreme volatility, reacting to every new – often conflicting – signal from the White House on the wars outcome. Thin liquidity is amplifying these moves, as many traders have exited the market, leaving mostly algorithmic traders and oil producers. Meanwhile, Reuters reported yesterday that the amount and size of suspicious trading activity ahead of White House announcements about easing tensions – and subsequent oil price declines – was larger than previously thought, totalling about $7bn in March and April.” “Over the past 24 hours, Brent initially fell to a recent low of $93 per barrel on hopes of an imminent resolution, before surging to an overnight peak of $102.9 as those hopes faded. At the time of writing, Brent futures stand at $100.2 per barrel, down from around $115 earlier