Wednesday, January 16, 2013

Checking in on the Brent WTI Spread

WTI crude has relatively quietly climbed back into the mid $90 range while Brent continues to be well over the psychologically important $100 mark.  Over the last few weeks the spread between the two has narrowed slightly but is still elevated.  If the spread finally compresses in 2013 the price of WTI would increase by 20% assuming Brent holds its price.  If the global oil price were to rise on top of that, investors who primarily watch the WTI price of oil could see a significant rise.

Brent WTI Crude Oil Spread

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