The Fuse

Video: Quantitative Trading and Oil Price Volatility

by Leslie Hayward | December 15, 2015

The price of oil has roughly halved since last summer, dragging down the share prices of major U.S. energy companies on Wall Street. Meanwhile, implied volatility in oil prices is up to 70 percent in recent months, over 18 percent from 2012 to 2014. This volatility has drawn significant activity from technical traders, but the jury is split when it comes to the impact of such trading on prices.