Oil bid on volatility as 'algo' traders start to ramp up extreme price swings. Putin 'Put' is still $100 as he threatens Europe with "economic suicide" if they ban Russian oil. Russia now controls South East Ukraine, cutting Ukraine off from its sea trade routes. Can Germany cut off its reliance on Russian oil?

(Chart 1)

(Chart 2)

I caught the 0.88 (0.82%) change in the oil price in 3 days from 2022/05/13 to the 16th.  Refer to Chart 1 above, oil rallied to $114 blowing past its resistance 114 (green line) on the back of algorithmic systems mispricing inflation/stagflation trade on Federals Reserve speak, then sending the oil price down to its 110 and 108 supports (red lines).   With volatility now picking up, note with Chart 2 of the OVX (Oil volatility index) and the VIX (Volatility S&P), please refer to the 07 March 2022 vertical $12 line showing spikes in both the OVX and VIX when the oil price reached $123 a barrel.   The March 2022 China lockdowns for COVID-19 didn't dent the oil price as much as one woould expect, sending it down under $100, with the price bouncing back along the so-called Putin 'Put' ($100 a barrel).

The big question is: Can the European Union/Germany ban Russian oil?  As Russia is in complete control of the strategic city of Mariupol and the Sea of Azov thus cutting off Ukraine maritime trade.  To which Russian can now use as a military hub, refueling and suppling its forces to continue the war in Ukraine.  

What to watch for is the tandem volatility of the VIX (stocks) and OVX, as the market will have trouble pricing in everything in lieu of the worst stagflation condition/s in over 40 years.