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Crude Puts Skew Smallest Since Mid June

OIL OPTIONS

The crude put skew narrows to the smallest since mid June on Russian supply and US SPR uncertainty.

  • The Brent Dec22 puts skew has closed to -0.83$/bbl while the WTI skew is down to -1.15$/bbl. Mid last week the 25 delta puts were trading over 4% higher than the 25 delta calls.
  • The Dec23 skew has also reduced from over 10% with Brent now at 7.3% and 7.8%.
  • The increased upside risks come from uncertainty over Russian supplies and the potential for US to restock strategic oil reserves next year.

Source: MNI / Bloomberg

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