Geopolitics Driving Brent-WTI Spread Near One-Year High
...From Commerzbank’s commodity strategists this morning:
[T]here are latent supply risks on the oil market since Turkey might become involved in the conflict in Syria, which would affect key oil transport routes. Moreover, rebels in Sudan have attacked the provincial capital of the main oil producing region. This might endanger the recently signed peace treaty between Sudan and South Sudan and, in turn, the resumption of oil production (which has been interrupted since the beginning of the year). As a result, the Brent price has risen to almost $113 per barrel. The price spread between Brent and WTI has widened to more than $22 per barrel, i.e. its highest level in almost a year....MORE
