June 14, 2011
Spread Between Brent and WTI At Unprecedented Level
This graph, measuring the difference in price between Brent North Sea crude oil and West Texas Intermediate, has blown out to unprecedented levels. Bespoke does not offer a full explanation but rounds up the usual suspects:"unrest in the Middle East disrupting supplies in Europe, excess supplies in Cushing, Oklahoma (the delivery point for WTI), and decreased demand in North America while demand in other parts of the world is increasing." For further background, see here.