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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
Brent put skew continues to trend lower as the market weighs the impact of economic risks on global oil demand.
- The spread between 25 delta puts and 25 delta calls has gradually moved in favour of the downside since the end of February. The correction back towards calls last week proved to be short lived with outright crude prices continuing to fall this week.
- Aug22 Brent puts are 2.6% over calls and Dec22 puts are approximately 4% over. The put skew is even greater in 2023 with Mar23 7.5% over calls and Dec23 nearly 10% over.
- ATM volatility is gradually ticking back up with high uncertainty over both supply and demand driving large daily price swings. Implied and 30d historic vols are up over 52% having briefly fallen below 40% at the end of June.
Source: MNI / 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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