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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
Recent supply uncertainty has driven WTI front month implied atm volatility back up above 50% while the skew continues to favour the downside despite a rallying futures market.
- An output reduction from CPC, protests in Libya and Iraq, OPEC member underproduction and changes to OPEC production targets to push volatility up from a low around 40% in August. New lockdowns in China have also added to the weak demand picture and price swings.
- Every decreasing WTI aggregate open interest adds to market price swings and high volatility. Open interest is down to 1.47m from a peak over 2.5m last year.
- The WTI Dec22 skew to the puts remains relatively unchanged at approximately -4%.
- Brent NOV 22 up 4% at 96.72$/bbl
- WTI OCT 22 up 3.7% at 90.06$/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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