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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 crude option call-put skew has turned the most bearish since early June as front month Brent futures have fallen from a high of $81.59/bbl on Aug 27 to the lowest since December amid market oversupply risks.
- Weak demand in China and non-OPEC supply growth are adding to the possible return of OPEC+ voluntary cuts gradually from Oct to potentially push the market balance into a surplus.
- A Bloomberg report today of “strong” indications for an agreement to overcome the current deadlock in Libya could return 500kbpd of supply.
- The Brent second month 25 delta call-put spread is today at -3.3% from -1.0% on Aug 26 while the WTI second month skew is down from 1.9% to -3.85% in the same period.
- Crude implied volatility continues to rebound with Brent second month up to 28.4% and WTI at 31.4%.
- Brent NOV 24 down 4.4% at 74.11$/bbl
- WTI OCT 24 down 3.9% at 70.66$/bbl
- WTI-Brent up 0.06$/bbl at -4.2$/bbl
- Brent NOV 24-DEC 24 down 0.27$/bbl at 0.52$/bbl
- Brent DEC 24-DEC 25 down 0.87$/bbl at 2.38$/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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