Societe Generale Sees Diverging Oil Normalization After US-Iran Deal
Societe Generale analysts note that Brent oil prices are normalizing after the US-Iran deal, but highlight differing adjustments across spot, volatility, and options markets.
Analysts Jitesh Kumar and Jeremy Sellem of Societe Generale observe that Brent crude oil prices are entering a normalization phase following the recent US-Iran deal. However, they emphasize that the adjustments are not uniform across market segments.
Key divergences are emerging between spot prices, volatility measures, and options pricing. The analysts point to a shift in market dynamics as the agreement alters supply-side expectations.
The note suggests that while the overall trend is toward normalization, the path varies depending on the specific instrument, implying potential trading opportunities for those monitoring these divergences.
Source: FXStreet Forex News