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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
Dec24 crude options markets are reflecting the ongoing downside pressure from strong global supplies and scepticism towards OPEC+ output cuts. Brent futures have reversed earlier gains with a possible supply surplus next year offsetting the near term shipping risks in the Red Sea due to recent attacks from the Houthis in Yemen.
- The WTI second month 25 delta call-put skew has fallen slightly back to -5.2% since reaching a recent high of around -4% on Dec 13.
- Brent crude second month 25 delta call-put skew is however today up to -3.5% from as wide as -7.7% on Nov 23 ahead of the Feb24 contract expiry on Dec 21.
- The longer term Dec24 crude option call-put skews have also turned more bearish again with Brent down from -5.75% on Dec 12 to -6.55% today while the WTI spread is down from -6.7% to -7.25%.
- Aggregate crude traded volumes were below normal on Friday with Brent futures at just 0.78m and WTI futures at 0.66m. Brent options volumes were at 171k and WTI at 67k.
- Brent FEB 24 down -0.5% at 76.18$/bbl
- WTI JAN 24 down -0.5% at 71.04$/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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