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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
Crude oil ATM implied volatility continues to drift lower while the put skews narrow on supply risks for the second half of this year and with improved risk sentiment from US debt ceiling talks.
- Brent second month implied volatility is down to 34.4% today and WTI is down to 35.5% with futures holding within approximately a 4$/bbl range between about 73.5$/bbl and 77.5$/bbl since 5 May.
- The Brent second month 25 delta call-put skew has narrowed to the highest since 8 March at -4.6% from a low of around -7.3% in late April. The WTI second month spread is also at the narrowest level seen this month at -5.6%.
- The longer dated skews have followed the trend higher with the Brent Dec23 call-put skew closing in to -5.2% and WTI to -6.0% with potential for tighter supplies later this year and uncertainty over OPEC+ intentions at the upcoming ministerial meeting at the start of June.
- Brent JUL 23 up 0.2% at 76.13$/bbl
- WTI JUL 23 up 0.2% at 72.18$/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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