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Crude Put Skew Reduces as Futures Increase


WTI put skew reduces after OPEC future production comments.

  • Saudi Arabia indicated that OPEC+ may need to cut production to stabilize the volatile market with the possibility of coinciding with a potential return of Iranian barrels.
  • The Dec22 put skew has reduced from over 6% last week down to just 3.7% today. WTI crude futures have picked up from 86$/bbl to 94.4$/bbl in the same time period.
  • The Oct22 skew has closed to 4.5% and the Dec23 in to 9.4%. Front month ATM implied volatility for WTI crude is holding steady around 45%.

Source: MNI / Bloomnerg

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