Oil pumps and diagram


By Eric Norland

At a glance

  • The forward curves for crude oil, gasoline and ultra-low sulfur diesel are in backwardation.
  • CME Group’s CVOL Index of Crude Oil, Gasoline and ULSD shows implied volatility around double pre-pandemic levels, suggesting traders are not overly confident in the lower price scenario.

A month ago, when inventories of diesel and gasoline were unusually low, OPEC+ cut crude oil production by 2 million barrels a day. So oil…

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