August 18, 2022 13:12 GMT
ATM implied volatility of Brent dips but low liquidity and high market uncertainty are keeping vols elevated above levels from last year.
- Brent volatilities have fallen back after a rise earlier this week, from nearly 52% back down to 47.5%. WTI vols have fallen back from a peak of 58% on Monday to just under 46%.
- The put skew is holding near the lowest since Feb as concerns for global economic growth weigh on the oil price. The Brent Dec22 puts are trading 4.5% over calls.
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