Brent is an index of crude oil, which represents the average daily on the basis of trade based on market BFOF 21 days in the month of the relevant delivery. Most of the deliveries to the European and Asian markets are based on price index Brent. Whereas, on the other hand, West Texas Intermediate, which is more popularly known as WTI is the benchmark for U.S. crude oil prices. Traditionally there has always been a void or a spread between the two indices that is characterized by regional economic influence. Brent Oil originates in the region of the North Sea and is usually shipped to European and Asian markets, on the other WTI was born in Texas and southern Oklahoma and North American continent as a supply base.
prices phenomenon very crude in the United States recently began to catch up with the prices in European and Asian markets. And this is despite the fact that the situation in the Middle East is very volatile and unstable at the moment. What experts believe that the main reason for the drying of this gap is due to arbitrage flows rather than geopolitical reasons. If it was the geopolitical theory that should have pushed this gap even wider as they relate to the supply grow out current political scenario in the Middle East.
Traditionally European and Asian markets were most vulnerable to disruption because of the Middle East. This vulnerability is due to two reasons : first, that may influence the global oil production comes from this it is less readily available and secondly, because of concerns about the safe movement of cargo from this region as this is the main street restaurants in Asia and European regions .
the background of everything that is happening in the Middle East, the WTI price index rose by $ 3.5 per barrel as against only $ 1.5 per barrel of Brent crude oil price increase. The spread or premium over Brent was WTI, down more than 30% in just two trading sessions. This dynamic of prices lead to reduced imports of crude oil in the U.S. especially in the East and the Gulf of Mexico in recent weeks. The commercial stocks of crude in the United States have been reduced to 8 million barrels.
Now the question is will this drain WTI or Brent will be pushed back again? Because of the dynamics mentioned above in the United States there was an excess of supply and huge discounts offered on-site offers WTI. This is going to push the gap WTI-Brent again, not only spot these offers discounts and special offers for the supply of reworked WTI for African and Asian markets could reverse the dynamics of control WTI-Brent spread. We all have little 'more to see where everything settles down.
0 comments:
Post a Comment