Updated: July 20, 2013 -- WTI reaches Brent Crude prices, as predicted.
Here we see the mid-year point of oil. It has crept up, as expected, from an earlier post that I had made. I also expected the WTI and Brent spread to be tightening. This tightened quite a bit since early in the year. Here is the prior graph that we will compare to.
As you can see, the WTI-brent spread was about $15. Today, it is only $4. This means that oil imported into the ports of the USA from other countries costs roughly the same as WTI crude, otherwise known as "North American" oil.
An article on www.oil-price.net suggested this would happen back in January of 2012.
Take a read at: http://www.oil-price.net/en/articles/wti-edging-on-brent-crude-oil.php
It's interesting to watch this but also goes counter to what the politicians were spouting a year or more ago about. Do you remember hearing "once the oil drilling happens in the USA, it will be countless jobs and cheaper prices at the pump" during the elections? Well, now that WTI oil is not piling up in Cushing, Oklahoma, the WTI price has now become nearly on-par with the world oil price. Without politicizing this, people have to wake up to the fact that oil prices are not coming down anytime soon and unless there is another 2008-2009 type recession, they are here to stay.
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