WTI brent spreads has again widened to record levels. The Brent-WTI price differential held above $22 per barrel on Friday after a dismal non-farm payrolls number and neared its record high of $23.34 set on June 15.
While both benchmarks have historically traded within dollars of each other, the price differential is “here to stay”. Data shows that stocks at Cushing remain 37% above their 5-year average at 37 million barrels. this oil glut has created a pressure on WTI which looks much weaker compared to Brent.
Tension in Libya does not seem to end anytime soon.with ramadan approaching Nato will have to stop the attack on Gaddafi forces, which elonagates the civil war for one more month. Nato also attacked Libya's Oil installation to starve gaddafis without oil. All these factors are creating upward pressure on Brent.
At the same time, rising hostilities between oil producer’s cartel OPEC and IEA, the west’s oil watchdog, have made the market nervous
these factors will create will not let WTI Brent spreads to recover anytime soon
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