Research: Oil prices in question

Oil’s changing supply landscape, options skew strikes again

By Erik Norland, Senior Economist, CME Group

Oil’s changing supply landscape

  • Oil prices, options volatility are down a month after Saudi attacks
  • High inventories, slow global growth behind 14% rally fizzling out
  • Permian Basin leading the charge in US oil production surge
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Oil options skew strikes again

  • Out-of-the-money options skew remains less negative than normal
  • It could signal prices are heading lower in next three months
  • Geopolitics, fundamentals could push WTI prices higher
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