- Oil futures were trading near $103/Bbl in the U.S. after surging 8.4% on Thursday
- West Texas Intermediate has swung by more than $16/Bbl this week (BBG)
- Brent has moved by more than $5 in each of the last 16 sessions; a record
- Earlier this week, the IEA warned that Russia’s oil output could slump by a quarter next month, causing the biggest supply shock in decades (Bloomberg)
- “Should the IEA’s warning prove to be prescient, there is little standing in the way of a hefty supply deficit in the coming months,” said Stephen Brennock, an analyst at PVM Oil Associates
- Traders continue to flee volatility
- One of the most volatile has been diesel, partly because Russia is a major exporter to the rest of Europe
- Open interest has fallen by more than half from its high last year, as traders avoid wild price gyrations