Why is There Weakness In The Brent-WTI Spread, Despite Tension With Iran

Brent-WTI moved lower even though the price of oil climbed The risk is on the upside in the spread BNO and USO are the ETFs that reflect the short-term price action in the two benchmarks     In the world of crude oil, the two leading benchmark pricing mechanisms that trade on the Intercontinental Exchange and the NYMEX division of the CME respectively are Brent and West Texas Intermediate or WTI. Approximately two-thirds of the world’s producers and consumers price their petroleum using the Brent price, including oil from Europe,…

Why OPEC is a relic of the past

A nine-month extension to production cuts Russia’s profile rises Output policy now depends on a triad of the leading producers   The international oil cartel met on July 1 and 2 at its biannual meeting in Vienna, Austria. Before the meeting, the oil minister from the most influential member of OPEC, Saudi Arabia, said that his country would like to see Brent crude oil in a range from $60 to $70 per barrel.  Trades issues that threaten the global economy and the rising tensions in the Middle East are pulling…