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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 option call-put skew has extended the bearish trend with a rally in put volatilities this week faster than calls. The near term WTI bias to the puts is the strongest since December as oversupply risks weigh on crude markets.
- The bearish skew is driven by a potential return of Libyan flows and weak China demand, despite recent US stocks draws, the potential for OPEC+ to change the current plan to maintain cuts into Q4 and possible US Fed easing rates.
- The Brent second month 25 delta call-put spread is today at down to -3.7% from -1.0% on Aug 26 while the WTI second month skew is down to -5.0% from -1.9% late last month.
- Crude implied volatility continues to rebound with Brent second month up to 29.1% and WTI at 32.8%.
- Yesterday saw a switch to greater put traded volumes than calls in both Brent and WTI while overall volumes were greater than normal. Daily aggregate Brent futures traded volumes have been above normal in the last couple of days and up at 1.70m yesterday with WTI up at 1.36m.
- Brent NOV 24 up 0.5% at 73.09$/bbl
- WTI OCT 24 up 0.5% at 69.53$/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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