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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
The war-risk premium in the oil market has virtually disappeared, according to Bloomberg, as the price of bullish call options is no longer above that of put options.
- Options encountered a call skew following the outbreak of war between Israel and Hamas. However, this has since abated as the war appears to be contained to Gaza, rather than sparking a regional conflict.
- The price of puts, allowing traders to hedge against falling prices, has become more expensive, Bloomberg added.
- Crude futures have also receded from their prices spikes at the beginning of the war, although larger jumps in prices were observed in the options market as traders looked to insure against an adverse disruption to supply.
- Instead, a weak demand outlook continues to be outweighing any bullish sentiment.
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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