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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 Brent front month Dec22 skew has gradually close into parity over the last week having been showing a put premium of around 2% at the start of the month. The skew reflects the extra upside risk from the OPEC+ production cuts in the front month.
- Further down the forward curve put vols have strengthened. The aim from OPEC to encourage future investment with global capacity still limited and ongoing demand concerns have support the longer dated puts.
- The Brent second month contract is showing 25 delta puts at a 2-2.5% premium to 25 delta calls. The skew has remained relatively unchanged over the last week.
- The Brent Dec23 put vols have strengthen with the Brent skew out 8.7% from around 6% early last week.
- Open Brent crude option interest shows volumes covering both significant potential downside and upside moves. Significant open interest across contracts out to Dec24 sits on the downside between 50$/bbl and 80$/bbl and on the upside between 100$/bbl and 150$/bbl.
- Brent DEC 22 up 0.3% at 98.25$/bbl
- WTI NOV 22 up 0.6% at 93.19$/bbl
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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