From RBN Energy:
The West Texas Intermediate (WTI) discount to Brent has narrowed 30 percent in 2013 to close at $13.95/Bbl on Friday March 22, 2013. At the same time Gulf Coast Light Louisiana Sweet (LLS) prices have moved unexpectedly to a $6.75/Bbl premium over Brent. Is the WTI discount to Brent finally unwinding? If so – then why are LLS prices trading above Brent? Today we update our analysis of the WTI/Brent spread.
Here at RBN Energy we know many of our members are eager to hear about the latest developments in the Brent/WTI spread saga. [Follow the Brent/WTI spread daily via RBN’s Spotcheck - click here if you have trouble accessing.] However before we jump into the latest scoop we’ll return to basics for a minute to allow new fans of this popular soap opera to catch up – skip the next couple of paragraphs if you are already a Brent/WTI wonk. West Texas Intermediate (WTI) crude, the US domestic benchmark and Brent crude, the benchmark for Europe, Africa and the Middle East, are both light sweet crudes with similar refining qualities. WTI has a gravity of 39.6 API degrees and sulfur content of 0.24 percent. Brent has a gravity of 38.06 API degrees and sulfur content of 0.37 percent. That means the crudes are just about equal in quality, and therefore should be priced about the same if they are trading in the same geographic market. Historically that was the case, and WTI and Brent prices tracked closely, with WTI generally having a slight premium over Brent – until August 2010....MORE
