"Brent-WTI Spread Drops to a 52-Week Low"
Our
second link to
Bespoke Investment Group today:
As the stock market surges to new all-time highs, one indicator we
watch closely hit a 52-week low today, which is a good thing. The chart
below shows the spread between price of Brent and WTI crude oil prices
over the last year. After widening out to the low 20s in the last
several months, the spread has now collapsed all the way down to $10.62,
which is a 52-week low.
Why do we care about the spread between Brent and WTI crude oil? The
answer is that gasoline prices have a much closer correlation to prices
of Brent crude oil, so when the premium of Brent crude narrows relative
to WTI, it acts as downward pressure on the price of gasoline.
