- Supply concerns outweigh disruption to oil demand in China due to lockdowns
- The measure of WTI volatility remains elevated as competing factors of supply and demand keep uncertainty high
- WTI’s three-month implied volatility was at 49.09 percent yesterday, about 14 percent higher than the five-year average
- AEGIS notes that high volatility causes option premium to be more expensive and can change approaches to a variety of hedging strategies
- Germany’s Foreign Minister Annalena Baerbock announced plans to stop imports of Russian oil by year-end (Reuters)
- “I, therefore, say here clearly and unequivocally, Germany is also completely phasing out Russian energy imports,” said Baerbock
- A German oil embargo on Russia has previously been thought unworkable without causing recessionary pressure