WTI volatility trends down on the historic Strategic Petroleum Reserve (SPR) draw. Holding above 2nd March 2022 support at $98
(Chart 3)
The oil price (West Texas Intermediate) is finding bids below $100 at $97, barely holding support at the March 2nd price range of $98, as the market, despite oil volatility beginning to smooth out, as noted with the OVX, yellow line below the WTI Chart 1, 2 and 3. Chart 1 shows the price spike and volatility beginning on the 1st of March and ending on the 8th at $126 a barrel.
Chart 2 shows bids occurring at $97 on the possibility that European Union will finally ban Russian gas and oil imports.
As President Biden has issued the biggest release from the Strategic Petroleum Reserve (SPR) in history at 180 million barrels or one million barrels per day, oil chart analysis in this post, the affect may not stabilize prices as such but rather settle the price at a three month average of $95 (Chart 1). Which is still higher than the 5 year average between $40 and $50 a barrel (Chart 3), which would be the desirable range.
However, the oil price remains vulnerable to volatility swings on continual Middle East, Russian and inflation news.
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