Something Very Strange Is Happening In The Oil Options Market

Seven months into a war that has, at various points, shut the world's most important oil chokepoint, you would expect the Brent options market to be screaming in both directions: calls for the escalation, puts for the peace deal. Instead, one wing is screaming and the other has gone to sleep.

That's the conclusion of Isabel Blaze of Goldman's FICC & Equities commodities team, whose latest note "Brent Skew vs Spot Dislocation" (available to pro subs) flags what she calls a "dislocation" in the Brent vol surface:

Both Wings Should Be Bid. Only One Is.