Why the Oil Price “Spread” is Getting Tighter

The spread between WTI and Brent is tightening again.

What’s “the spread?”…
It’s the difference in price between what crude oil futures cost on the NYMEX in New York (the West Texas Intermediate rate) and the rate set in London (the Brent rate).
As of this morning, this spread stood at 7.2% of the WTI rate (the more accurate way to register its impact in the U.S. market).
It had been as low as 3.6% earlier this month, after hitting double-digit levels for most of 2013, when in some cases the spread jumped to over 20%.  (more)

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