Brent Crude vs. WTI
Brent crude and West Texas Intermediate light sweet crude (WTI) have been seeing very different prices in past months. WTI has been falling behind the Brent crude prices. What should be expect in future months? Andrea Tse shares her expectations and predictions.
"WTI, of course, remains discounted to Brent these days, as much of the WTI oil remains trapped in the Midwest due to a lack of pipeline infrastructure, resulting in a glut of supply.
Also helping WTI prices Friday was talk among tradersthat Canada may have to start rationing some grades of western Canadian light crude oil, which compete head-to-head with WTI, as pricing drops to the mid-$70 area.
The December Brent crude contract, on the other hand, drifted $1.25 lower to $102.95 as traders unwound WTI-Brent spread trades and frowned on the global benchmark’s exposure to the dire situation of the eurozone and potential ramp-up of Libyan oil supply. The contract broke below the $23 WTI-Brent spread level Friday — the typical discount at which WTI has been trading to Brent."
Find additional research and charts here: http://turnkeyoil.com/2011/10/13/brent-crude-vs-wti/