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Brent Open Interest Has Fallen as Crude Volatility Rises


Brent crude open interest has declined in the last week as market volatility has risen with the focus on downside risks due to recessionary fears and weak demand.

  • Brent open interest has fallen from a high of 2.278m on 21 Apr to 2.149m although WTI open interest is relatively unchanged in the same period at 1.88m. Liquidity has also been lower this week due to the UK and Asian holidays. Producers, consumers and merchants are dominating positioning following a speculative exodus according to TD Securities
  • Second month Brent implied volatility has increased from just 31.75% in mid April up over 40% today. WTI is up to nearly 42.5%.
  • ICE Gasoil open interest continues the steady increase since late last year up to 0.63m and the highest since Mar 2022 but is still well below levels of over 0.95m seen in 2021.

Source: Bloomberg

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