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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
Geopolitical risks and expectation of a market deficit in Q2 due to tighter supply and improved demand forecasts are boosting prices but market volatility remains subdued. The Brent second month ATM implied volatility is holding just above the lowest since Dec 2019 seen last week with Brent today at 22.72% and WTI at 24.76%.
- Front month futures are easing lower today after gains yesterday with front month holding within the range seen since mid March as markets assess the impact of Russian refinery outages and the potential return of Venezuela sanctions.
- The Brent crude second month 25 delta call-put skew is holding steady around -1.6% after narrowing in the first half of March. The WTI second month skew is today at -1.8% compared to nearly -4.15% at the end of February.
- The Brent Dec24 call-put skew continues to narrow following a trend in place since December up to the least bearish since May 2022 at -3.15% today and the WTI Dec24 skew has narrowed to -4.2%.
- Brent crude aggregate traded volumes were yesterday near normal with futures at 0.92m and options volume of 211k relatively evenly split between calls and puts.
- Brent MAY 24 down 0.5% at 86.32$/bbl
- WTI MAY 24 down 0.3% at 81.73$/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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