The Brent-WTI spread has compressed under $14 for the first time in 10 weeks but it is being led by the margin-hiker-in-chief's most visible indication of dastardly speculation - the WTI contract as Brent remains close to unchanged. Perhaps, just perhaps, there really is little to no speculation (remember there is a speculative seller for every speculative buyer no matter how many speculator-surveilled market participants there are). As WTI breaks $105 for the first time in almost three weeks, we suppose this is not what Obama was hoping for and just as we pointed out earlier [3] - just as every failed attempt at central planning, all Obama will achieve is another spike in crude prices - an hour later - we are proved right.
Brent (orange) remains quietly unchanged while WTI (black) surges to near three-week highs, breaks $105 and crushes the Brent-WTI spread back near $13...
[4]
Brent-WTI spread...
[5]