The near term crude options continue to hold a call skew which has been supported by strong call option traded volumes in recent days. Market focus is on upside price risks driven by Middle East geopolitical tensions, tight supply expectations and improving global demand expectations.

• Brent crude aggregate traded options volumes were high at 459k on Apr. 5 driven by the second largest daily volume of call options on record at 317k contracts. Volumes eased back yesterday but remain strong with an overall volume of 299k on the day.
• The Brent crude second month 25 delta call-put skew is today trading around +1.7% having reached a high of 2.3% on April 5 but compared to around -1.75% in late March. The WTI second month skew is today at about +2.2%.
• The crude Dec24 call-put skews are stable in early April after the narrowing trend seen in December to March. The Brent skew is today at -2.65% and the WTI Dec24 skew is holding around -3.6%.
  • Brent JUN 24 up 0.6% at 90.91$/bbl
  • WTI MAY 24 up 0.6% at 86.95$/bbl

Source: Bloomberg