Oil Options Echo Citi-to-Merrill View of a Brief Bear Market
- Decline into bear market to be short-lived, analysts say
- December Brent, WTI put skew down 30% since early July
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Oil analysts from Citigroup Inc. to Bank of America Merrill Lynch are confident that the new bear market in crude will be short-lived, while legendary oil trader Andy Hall sees a "violent reversal" ahead. The options market increasingly agrees with them.
Investors this week were paying the smallest premium in almost two months to protect against a drop in prices through the end of the year, even after oil entered a bear market.