Light vs Heavy

Back in October we posted a blog forecasting that the Brent/WTI price spread (at that time $22.76/Bbl) would narrow by the time of the Super Bowl (see Place Your Bets on Narrow Brent /WTI Spread for the Super Bowl). That turned out to be true (it is now $18.99/Bbl) but no Lambeau Leap for the RBN team.  A $19 differential is still a big number, and the crude supply congestion in the Midwest that led to a wide WTI discount to Brent in the first place continues. Last week the congestion showed every sign of moving to Houston and staying there at least until the end of the year. Today we present our post-Super Bowl Brent/WTI spread analysis.