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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.
OIL OPTIONS
The crude ATM implied volatility continues to trend lower with crude holding within a wide range between about 78$/bbl and 88$/bbl so far this year with no clear direction. Crude is edging higher this week with optimism for a recovery in China oil demand offsetting global economic growth uncertainty.
- The Brent second month implied volatility is at the lowest since Nov 2021 at 33.6% with WTI at 34.8%. Implied vols have gradually fallen from around 45% at the start of the year.
- The Dec23 25 delta call-put skew continues to narrow with Brent in to -3.45% and WTI to 4.3% today with upside risks from China demand and Russian oil supplies.
- The Brent second month 25 delta call-put skew is also closing this week in to -2.2% and the second month WTI skew is up to -2.6%.
- Brent MAY 23 up 0.7% at 84.91$/bbl
- WTI APR 23 up 0.8% at 78.31$/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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