September 27, 2022 10:34 GMT
Brent and WTI implied volatilities are increasing as flat price swings on demand concerns, potential for OPEC production cuts and hurricane disruption to Gulf of Mexico production.
- Front month Brent options expire today. The second month volatility is up to the highest since May for both products. Brent was up to 52.3% and WTI up to 55.6% at the close yesterday.
- The put option vols are rising quicker than calls bringing the skew up to 2.2% puts over calls for Brent Dec22 and 3.1% over for WTI Dec 22.
- Brent NOV 22 up 1.9% at 85.62$/bbl
- WTI NOV 22 up 1.7% at 77.99$/bbl