MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

MNI China Daily Summary: Wednesday, July 24

IFO disappoints

MNI: GERMANY JUL IFO BUSINESS CLIMATE INDEX 87

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Near Term Crude Put Skews Strengthens as Geopolitical Risk Eases

OIL OPTIONS
Energy BulletsHomepageBulletCommodities

The near term crude options put skew is strengthening slightly this week and the most bearish since late March as the geopolitical risk premium priced into the futures market has eased.

  • The Brent crude second month 25 delta call-put skew is currently around -1.25% after holding between -0.5% and -1.0% last week. The WTI second month skew is today out to nearly -1.8% from -0.7% on April 26.
  • The crude Dec24 call-put skews have remained stable in recent days as the market assesses the potential market balance in H2 amid OPEC+ output uncertainty and potential for softer demand growth. The US Fed meeting and jobs data this week may help to understand potential US rate cuts expected this year.
  • The Brent Dec24 call-put skew is today at -2.6% and the Dec24 WTI skew is at -3.3%.
  • Implied volatility yesterday fell to the lowest since late March with Brent second month atm implied volatility down at 21.375% and WTI at 24.1%.
  • Aggregate crude option volumes have fallen this week with daily call volumes back in line with put volumes. Brent options volumes were below normal down at 142k yesterday compared to a high of over 450k on April 15.
    • Brent JUL 24 up 0.5% at 87.62$/bbl
    • WTI JUN 24 up 0.5% at 83.03$/bbl

Keep reading...Show less
212 words

To read the full story

Close

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.

The near term crude options put skew is strengthening slightly this week and the most bearish since late March as the geopolitical risk premium priced into the futures market has eased.

  • The Brent crude second month 25 delta call-put skew is currently around -1.25% after holding between -0.5% and -1.0% last week. The WTI second month skew is today out to nearly -1.8% from -0.7% on April 26.
  • The crude Dec24 call-put skews have remained stable in recent days as the market assesses the potential market balance in H2 amid OPEC+ output uncertainty and potential for softer demand growth. The US Fed meeting and jobs data this week may help to understand potential US rate cuts expected this year.
  • The Brent Dec24 call-put skew is today at -2.6% and the Dec24 WTI skew is at -3.3%.
  • Implied volatility yesterday fell to the lowest since late March with Brent second month atm implied volatility down at 21.375% and WTI at 24.1%.
  • Aggregate crude option volumes have fallen this week with daily call volumes back in line with put volumes. Brent options volumes were below normal down at 142k yesterday compared to a high of over 450k on April 15.
    • Brent JUL 24 up 0.5% at 87.62$/bbl
    • WTI JUN 24 up 0.5% at 83.03$/bbl

Keep reading...Show less