Oil options markets are still pricing in upside risk: The 1-month call-put skew on WTI Crude oil futures is up to ~30, the highest in at least 4 years. This means investors are paying a historic premium for bets on higher oil prices over bets on lower prices. The call-put skew also surpasses the peak levels seen during the 2022 energy crisis following the Russia-Ukraine war. This comes despite WTI Crude oil prices falling -30% since Monday’s peak of ~$119.50 per barrel. Investors remain worried about a prolonged oil and gas flow disruption as the Strait of Hormuz is still effectively shut. Options traders are hedging against a long supply shock.(The Kobeissi Letter)