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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
Crude put skew maintaining premium to calls suggesting ongoing market concerns for downside potential.
- Oct22 front month skew is around 7%, Dec22 is at 4.5% and Dec23 is as much as 8%.
- The Dec22 skew is lower potentially in reaction to the EU ban on Russian seaborne imports at the end of the year. Despite economic demand concerns the uncertainty over Russian output remains an upside risk for the market. EU sanctions will ban the remaining approximate 1.7mbpd imports of Russian crude by Dec 5 and 1mbpd of Russian refined products by Feb 5 2023.
- Below shows the current Brent vol skew for the Oct22, Dec22, and Dec23 contracts:
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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