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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
Brent second month skew has closed to 0.75% in favour of the puts from nearly 7% in mid August. Demand concerns continue to pressure prices downward but supply risks from the OPEC+ cuts and Russia production are giving market support.
- Demand concerns for next year and an increase in spare global capacity due to the OPEC+ cuts have helped maintain a premium for the Dec23 puts. Brent is showing a skew of 7.7% to the puts.
- The second month implied volatility has eased back below 50 % having been up near 55% earlier this month with OPEC+ production cuts and an economic slowdown driving uncertainty. Front month Dec22 Brent options are due to expire on Wednesday this week.
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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