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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL OPTIONS
The Brent crude Dec24 call-put skew has narrowed to the least bearish since May 2022 at around -4.95% while the WTI Dec24 skew has narrowed to around -5.65%. The Brent skew has been gradually narrowing since a low of nearly -7% at the start of December.
- The near term skews however remain relatively unchanged with global demand uncertainty driven by China and US offsetting geopolitical risks while uncertainty surrounds OPEC+ commitment to production cuts. Brent crude second month 25 delta call-put skew is holding within the range seen so far this year at -2.5% today and the WTI second month 25 delta call-put skew is at -3.2%.
- Crude second month ATM implied volatility is also steady after increasing in late January. Brent implied vol is around 30.4% and WTI at 32.6%.
- Crude aggregate traded volumes dropped yesterday from strong amounts seen at the end of last week. The Brent futures volume fell to the lowest since Jan 15 at 0.83k yesterday and the WTI volume was also down to 0.83k. Brent options saw an aggregate traded volume of 117k yesterday with WTI at 120k.
- Brent APR 24 up 0.1% at 78.09$/bbl
- WTI MAR 24 up 0.1% at 72.82$/bbl
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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