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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 Dec23 25 delta call-put skew continues to narrow with Brent in to -3.5% and WTI to 4.5% today. The Brent skew was -8.3% back in November to around -5.3% near the end of Jan.
- Resilient Russian exports despite sanctions and economic demand concerns are limiting upside in the futures, but the call options are slowly gaining relative to the puts with optimism for the demand recovery in China. Numerous analysts have reduced price forecasts recently with Bank of America yesterday the latest to lower their expectations for this year from 100$/bbl to 88$/bbl.
- The Brent second month 25 delta call-put skew is holding at -3.1% and the second month WTI skew is currently around -3.7%.
- The second month ATM implied volatility is at the lowest since Nov 2021 at 34.6% for Brent and 36.1% for WTI.
- Brent MAY 23 up 0.7% at 82.61$/bbl
- WTI APR 23 up 0.9% at 76.33$/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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