# Analyzing Implied Volatility for Crude Oil and Natural Gas

By Rabindra SamantaUpdated

## Crude oil’s implied volatility

Crude oil’s (USO) implied volatility was 33.31 on May 27, 2016. The 15-day average is at 39.16. The current implied volatility is 15% below its 15-day average. It spiked to 47.99 on May 16—its highest level in May 2016. Since then, the implied volatility fell 30.6% to date.

## What about natural gas?

For natural gas (UNG), the implied volatility was 41.97 on May 27, 2016. The 15-day average is at 46.35. The current implied volatility is 9.4% below its 15-day average. It spiked to 58.71 on May 24—its highest level in May 2016. Since then, the implied volatility fell 28.5% to date.

## Comparing the implied volatility

For natural gas, the implied volatility is higher than crude oil’s implied volatility. The above graph shows natural gas and crude oil’s implied volatility in May.