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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
The crude option put skew turns the least bearish since early March after the latest OPEC meeting gives support the crude market.
- Brent second month 25 delta call-put skew has risen from around -4.75% late last week up to -3.4% after the announced additional voluntary production cuts from Saudi Arabia in July. The cuts are to stabilise the markets and suggest a reduced downside to prices despite ongoing risks to global demand.
- The WTI second month call-put skew is up from about -5.1% last week to -3.9%.
- The longer dated skews have also followed the move with the adjusted OPEC quotas for 2024 designed to reflect how much each state can produce with many members under producing compared to current targets. The Brent Dec23 call-put skew has risen to around -4.3% and WTI to -5.3%.
- Second month ATM implied volatility has pulled back with Brent back to just below 35% and WTI at 36%.
- Brent AUG 23 up 1.9% at 77.54$/bbl
- WTI JUL 23 up 2% at 73.16$/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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