ProShares Ultra Bloomberg Crude Oil Shares Fall As Oil Tumbles On Iran Ceasefire Hopes

WTI crude fell 15% to about $95/barrel as traders rapidly unwound positions that had priced in a prolonged disruption in the Strait of Hormuz. The move signals a sharp reduction in risk premia for potential supply chokepoint disruptions and implies elevated near-term volatility for energy markets and related assets.

Analysis

WTI crude fell 15% to about $95/barrel as traders rapidly unwound positions that had priced in a prolonged disruption in the Strait of Hormuz. The move signals a sharp reduction in risk premia for potential supply chokepoint disruptions and implies elevated near-term volatility for energy markets and related assets.