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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
WTI second month call-put skew shows the most bearish since Aug 19 with a put bias of approximately -6.1%. The Brent second month skew has closed slightly back to -4.2%.
- High uncertainty over Chinese demand, Russian exports and any reaction from OPEC are maintaining high market volatility. Second month ATM implied volatility is at 48.3% for Brent and 52.2% for WTI.
- Rising covid restrictions and protests are likely to impact on oil demand with some analysts suggesting an easing of China covid policy at some point next year.
- Russian output has held up relatively well ahead of EU sanctions and a high oil price cap could help maintain supply and reduce the risk of a supply cut in retaliation from Russia.
- OPEC+ are due to meet on Dec 4 and falling prices and demand expectations could increase the chances of further reaction from the group following the production cuts in Nov and Dec.
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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