Crude oil volatility just exploded to 71.5—its highest level in over a year.
Historically, $OVX above 55 signals major stress in energy markets. We’re now well beyond that.
This isn’t noise. This is dislocation. pic.twitter.com/w3S5TnB9JN
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) June 17, 2025
What it implies:
- Energy markets are on edge. This level of volatility means price swings could be violent and unpredictable.
- Insurance and shipping costs are rising. Tankers moving through the Gulf are already facing higher premiums.
- Central banks are watching. A spike in oil prices feeds inflation, which could force monetary tightening even in fragile economies.
- Investors are hedging. Options activity is up. Safe-haven assets like gold are climbing.