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WTI Crude Higher Than Brent Crude For First Time Since July 2013
From almost $30 differentials in 2011, today's bounce in WTI has pushed the Brent-WTI spread negative for the first time since July 2013 briefly (and August 2010 consistently). This is, as the chart below shows, more 'old normal' as pre-QE the Brent-WTI spread oscillated in a very narrow range...
WTI's bounce has pushed it above Brent today...
For the first time since July 2013 and August 2010...
Charts: Bloomberg
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The big difference between now and 2008/2009 is the fact that there is absolutely no market for true price discovery, period.
We have entered the "soviet era" in the U.S., I expect the outcome will be no different. Specifically, we will continue to hear about how things are "improving" and how there is "no inflation" as doing business and actually acquiring real goods and services becomes increasingly more difficult. Eventually (just like the Soviet Union), productive people in productive states will tell D.C. to simply fuck off.
Eventually? hell I tell them daily.
Maybe they might hear you if you were E. Warren. But you can see she gets no respect either.
I didn't think I'd ever see WTI and Brent reach parity. The Saudi's are probably not to happy about it.
The USSR was also big on blaming the weather for everything. The Fed must be taking ques from the Soviet era to tweak this behavioral economics sham.
I am wondering: With WTI below 50 USD/barrel, is XOM still a 385 bn USD company or no?
Survey says..... yes.
in the US, cheap oil doesn't stop refiners... it makes them more profitable... exhibit A: Valero
I called zee oil bubble maaaan... Now lets see if this Canada housing bubble with burst.
This was a comment I made on the FOFOA blog on June 6 2014 when oil was $102 a barrel:
Everywhere you look, there is countries and companies discovering new oil and using capital intensive means to get at it. Everyone is becoming oil rich. Russia turned itself back into an empire overnight because of oil.
Everyone seems oblivious to the fact that oil is a commodity market like anything else and if it gets over-supplied, the price will have to come down. It always does. But ever since 2000, there hasn't been a state of over-supply in the market. I think we are way overdue for one. Who knows what form this oil bear market will take, with all the inflation in the world....Who knows how badly the inflation is screwing up the oil market.
"business cycle" -- how quaint. Too bad these things have been thrown away in "modern eCONomics" along with terms like collateral and counterparty risk.
Mmmmm..... OK. You get full credit from me on that one. Timely call, but it wasn't a "permabear" theme you had been saying for 5 years straght, regardless of the price of oil. Obviously, you got the direction right (though I doubt even you expected the magnitude). And you remembered your own post and where to grab it again for a quote, which means you probably really meant it when you posted it.
Now do it again.
That WTI no longer is cheaper than Brent, does that mean the shale oil oversupply is priced out, or that Europe is in more problems, or a combination of both?
Europe is in denial right now, check back in three months or so when the ECB is shown to be lying through their teeth and the riots are in full swing.
Sorry, off thread. I'm scratching my head because the front pages of both CNN and CNBC have dropped stories about the IS/ISIS/ISIL hack of CENTCOM. I guess it's time for the next "2 minutes of hate."
That might be due to some US oil getting exported now even though it's a very small amount. On the whole though, the two are just numbers on a screen and don't represent any oil in particular, just some grade.
Rigs shutting down, WTI becoming relatively scarcer.
Finally. WTI is top grade.
And now watch WTI and Brent prices plummet in a tandem mode.
A bit OT but whats up with Silver today? Platinum, Palladium and Gold have all been clawing gains for a few bucks, but Silver continues to attack through $17, only to be smashed down below that level (three times so far today), but Silver is again on the warpath, blowing through $17 yet again and is now up over 3% at $17.10...well outpacing gold. Anybody know whats up?
i think you could answer your own question if you look over the past year silver has been hit much harder than gold. the gold to silver ratio at 72 is way out of kilter and will IMO eventually correct itself...
I am curious too. Good thing we have those new collars to keep things orderly.
http://www.kitcosilver.com/charts/24hoursspot.html
Anybody watching Dr. Copper? Crazy stuff...
Hammered relentlessly.
Just put it on the train tracks, Locomotive flattens it nicely... ;)
Just bought some uco
We should DDOS that investment watch blog asshole
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The Brent-crude relation notwithstanding, both are down 60 or whatever %, and deluded equity indices up 1%-plus again today aren't really going anywhere without accompanying action by the banks who are going to eat the oil default loan losses. Compare today's equity exuberance with one of bank indices BKS, up 1.1% earlier today and now almost negative:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=bkx&insttype=&freq=1&show=&time=5
BKX now minus 0.12% and off 1.3% for the day probably discounting the upcoming oil loan losses appropriately, but broad indices still up 1% aren't getting the problem into focus:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=bkx&insttype=&freq=1&show=&time=5
Since they're both tumbling, I would spin it the other way around
Brent is lower than crude for the first time blah blah blah...
Just a bit bored here today with the bullshit market
WTI will find some support around these levels short-term, but long-term the trend is still down... way down.
http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...