Posted inIran, Israel, Middle East, World

Shift in oil trade suggests risk premium amid US, Israel, Iran tensions

The price of oil usually moves inversely with the implied volatility of oil options. Oil producers are the main buyers of price hedges, and they hedge their downside risk more aggressively. When the oil price drops, they buy more options. That pattern is evident during most of the past two years. It shifted noticeably, though, […]