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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.
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The crude call-put skews are turning slightly more bearish today but still holding most of the gains seen so far in March. Brent second month skews last week closed to almost the least bearish since November amid geopolitical risks and improved global demand forecasts to add to the tighter supplies due to the extended OPEC+ cuts.
- The crude second month 25 delta call-put skew has eased back slightly after narrowing last week. The Brent skew rose from -3.3% on Mar. 8 to as narrow as -1.45% on Mar. 14 but is today back around -1.65%. The WTI second month skew is at -2.5% compared to -1.6% on Mar. 14.
- 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 -3.9% today and the WTI Dec24 skew has narrowed to -4.85% today.
- Despite crude front month futures trading through upside technical resistance levels in recent days the implied volatility remains low. Brent second month ATM implied volatility is at the lowest since September at 25.1% and WTI volatility is today at 26.7%.
- Brent MAY 24 up 1.2% at 86.36$/bbl
- WTI APR 24 up 1.4% at 82.17$/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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