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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.
OIL OPTIONS
Brent second month volatility skew is holding a slight premium to the calls as speculation over a possible relaxation of the Chinese covid policy adds to the market uncertainty. Increasing covid cases and confirmation of China’s commitment to the covid policy have reduced optimism of a China reopening.
- The Brent second month calls are currently about 0.25% over the puts down from a skew of as much as 2% on Nov 1. The Dec23 Brent skew has drifted slightly lower to a premium of around -7.4% to the puts.
- Economic slowdown concerns, China demand uncertainty and the possible disruption to Russian output due to EU sanctions and the G7 price cap are maintaining high market volatility. The front month Brent implied options volatility has been holding around 48% since the start of November.
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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