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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 near term call-put skew is holding steady this week ahead of the Brent Apr options expiry on Feb 26. The futures continue to find support at the upper end of the recent range with a weaker USD today and with strong backwardation suggesting tight supplies.
- Implied volatility continues to drift lower amid offsetting risks from Middle East tensions, uncertain future OPEC+ production policy and potential for US interest rates staying higher for longer. Brent second month implied vol is today around 26.8% and WTI at 28.5%
- The Brent crude second month 25 delta call-put skew is today around -2.7% and the WTI second month skew is at -3.9%.
- The Brent Dec24 skews have also steadied this week after narrowing this year. The Brent Dec24 call-put skew is today at -4.45% while the WTI Dec24 skew is -5.6%.
- Brent crude traded volumes were yesterday slightly above normal with futures at 1.06m and options at 141k. WTI futures volumes were however below normal yesterday with futures volumes of 0.75m and options of 90k.
- Brent APR 24 up 0.3% at 83.29$/bbl
- WTI APR 24 up 0.3% at 78.15$/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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