Crude Put Skew Holds Steady As Market Assess Market Fundamentals

The near term crude option put skew is holding within a tight range so far this month as the market assess the uncertain supply demand balance. Upside pressure comes from OPEC supply cuts and potential China stimulus measures and is weighed against current weak demand growth expectations amid possible further central back rate tightening and strong exports from sanctioned countries.

• Further support comes after a meeting between a Turkish energy technical delegation and Iraqi oil officials did not result in a decision to resume oil flows via Ceyhan and further talks will be needed.
• Brent second month 25 delta call-put skew has traded between about -4.74% and -4.25% so far in June. WTI second month call-put skew is holding between about -5.25% and -4.5%.
• The Dec23 skews are slowly edging slightly higher with the Brent up to -4.7% and WTI to -5.5% today.
  • Brent AUG 23 down -0.1% at 76.53$/bbl
  • WTI AUG 23 down -0.2% at 71.82$/bbl
  • WTI-Brent down -0.06$/bbl at -4.71$/bbl
  • Brent AUG 23-SEP 23 up 0.02$/bbl at 0.05$/bbl
  • Brent DEC 23-DEC 24 up 0.03$/bbl at 3.21$/bbl