Oil Options Skew Strikes Again… CME Group

October 16, 2019 by Jim Colburn Leave a Comment

Here is a very nice post from the excellent CME on skew before and after the attacks on Saudi Arabia:

”One month after the drone attacks on Saudi oil infrastructure, WTI and oil product prices have returned to their pre-attack levels. Implied volatility on at-the-money WTI, gasoline and Ultra Low Sulfur Diesel (ULSD) options has also similarly retreated. Options skew, however, while well off its highs, remains very different now than before the attacks on the world’s top oil exporter.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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