Macro Outlook – Diverging Brent and WTI price trends
Oil markets have been dominated recently by two issues, EU sanctions on Iran and surging North American supply. The upshot has not only been diverging WTI and Brent prices but also the dramatic emergence of wide regional light oil spreads in North America. Near term, at least, we expect international prices to continue to be buoyed by the Iranian issue while WTI and other US light grades languish under the weight of rising supply.
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