Spreading Trading -- Buyer Brent and Sell WTI Crude Oil:
1. Most of the time Brent Crude Oil price higher than WTI Crude Oil Price.
2. Only around 1 months period that this spread is lower than 1.26 from Jan 2015 to now.
3. Normally, Recent Spread was kept around USD3 to USD3.5 per barrel
This is the Spread chart. As You can see, TA works Great!. So Technicaly it should go to the support of this chanel. In this case, Brent will be $12 cheaper that Wti. This could happen olny if the price will be about 100! Thats the idea.
The relative strength between pricing of oil on an international vs. US domestic bases illustrates quite well the geopolitical changes that have occurred in the oil-producing theaters, not only from disruption of supply in the middle east - likely causing the shift fron under-to-above parity (purple line) around 2009, as well as...