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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 near term crude options put skew has held relatively unchanged since June 5 although longer dated skews are edging slightly wider this week with market focus on demand growth uncertainty.
- Crude futures are lacking direction in recent days with tighter supply expectations in Q3 set against demand concerns with a reduction in US Fed cut expectations and ongoing uncertainty over growth in China.
- The Brent crude second month 25 delta call-put skew is today at -2.3% and the WTI second month skew has drifted slightly wider to -3.2% ahead of the WTI July options contract expiry today.
- The Dec24 call-put skews are also slightly more bearish with Brent down to -2.95% from -2.5% on June 6 and WTI to -3.9% from -3.6%.
- Crude at the money implied volatility has fallen further to the lowest since 2019. Brent second month volatility is down to 21.7% while WTI is down to 23.6%.
- Brent AUG 24 up 0.5% at 83.15$/bbl
- WTI JUL 24 up 0.4% at 78.9$/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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