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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 options downside put skew has strengthened as crude futures have pulled back from a high of nearly $88/bbl in early July amid China weakness and a stronger dollar last week while renewed Gaza ceasefire hopes also added pressure.
- The unexpected China rate cuts today are providing some support along with supply risks from wildfires in Canada while the predicted active Atlantic Hurricane season and Russian energy infrastructure strikes are added uncertainties.
- The bearish sentiment over oil demand and potential return of some OPEC+ supply from Q4 is offsetting the expectation of a tighter market and inventory draws this quarter and a US Fed rate cut expected in September.
- The second month Brent 25 delta call-put skew is today down to around -2.4% and the WTI put skew is at -3.0% having both widened from near parity at the start of July.
- The Brent Dec24 call-put skew is also wider at around -3.3% and the WTI skew is at -3.95%.
- Crude implied volatility has recovered from the lows seen in mid July with Brent second month at the month volatility up to 22.4% and WTI to 23.9%.
- Brent SEP 24 up 0.1% at 82.75$/bbl
- WTI SEP 24 up 0% at 78.67$/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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