Tuesday, April 2, 2013

WTI-Brent spread tightest in a year

In late 2010, WTI began to sell at a large discount to Brent, as rapidly increasing production in
the midcontinental United States and Canada had limited access to markets due to pipeline
constraints.


Brent and U.S. crude oil (WTI), the difference between the last week went up to $ 12.70! New Year's Eve, this year, while estimates of the Brent-US crude oil prices have dealt with in a separate article, and in those days, which was around 22 dollars "difference" might be under $ 15 for this year was expressed.

Wti Brent Prices 2010 2013



Prior to the global crisis, and even the crisis peaked in the first quarter of 2009, with the exception of 2010 until the first quarter of the year WTI's barrel price of Brent, which is the basis of our oil imports in terms of our $ 5 higher than the average of oil. With the crisis of the U.S. economy "stagnation" brought about by the contraction of demand and rising inventories rise due to the WTI ! However, little or no affected by the global crisis, the increasing demands of the developing countries, priced areas in Brent oil prices led to an increase in! Brent "in favor of the" returning in September 2011, this difference was as much as $ 27.One of the two major factors that support will close the gap hunch Christmas this year Iran-Israel tension "rising" was expected there would a conflict between the two countries. Israel apologized to Turkey relations between the two countries and "normalization" efforts, the likelihood of conflict "reduce" stands out as a factor. On the one hand the result of sanctions imposed on Iran, are expected to improve cooperation between Turkey and Israel on the other hand will be studied. Any conflict, but these two elements "mature" and then find the body. It seems that these conditions will not be able to reach a conclusion as soon as possible. This is Israel's attack against Iran is unlikely to occur this year, I think.Assumption narrowing of the gap in the second quarter of the U.S. economy recovering faster than other countries was expected. Looking at the problems the EU is decreasing over the crisis hit the two blocks are increasing too. The United States is relatively more comfortable. Although the data have not yet reached the desired level, the recovery is still in good condition they are much more precise than in the EU.The start of the recovery in demand in the United States is reflected in oil prices.The difference between the fall of Brent too, will be closed by WTI's assumed to rise. Indeed, advances in this direction.$ 15 difference in the coming period is no longer "resistance" would be, so I'm guessing the difference is not further increase above this level. The difference is above this level will be at most 20 dollars if Iran-Israel tension approaches the economic data but still need to focus on.The difference falls below $ 10 as the global crisis relatively new and to demonstrate the achievement of a period of increased optimism is important to carefully monitor!

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