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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 second month WTI crude options put skew is the least bearish since 8 March driven by near term tighter supply concerns.
- The OPEC production cut starting in May, disrupted Iraqi Kurdistan oil flows, lower Russian exports, and falling Cushing inventories are all supporting futures prices and helping reduce the put skew.
- The WTI second month 25 delta call-put skew is up from a low of around -6.8% earlier this week to -4.9% and the Brent second month skew is up from -6.6% to -5.4%.
- The Dec23 skews are however drifting lower with concern for the impact of economic growth on global oil demand and with the speed of recovery in China looking less certain than indicators were suggesting earlier this year. The Brent Dec23 skew is down from a peak of -3.4% at the start of March to -6.5% and WTI is down from -4.4% to -7.4%.
- Second month ATM implied volatility continues to fall down at 33.0% for Brent and 33.3% for WTI.
- Brent JUN 23 down -0.3% at 87.05$/bbl
- WTI MAY 23 down -0.2% at 83.07$/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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