Pennsylvania Trust

Widening Spread – Oil

Widening Spread – Oil

The U.S.’s planned announcement on eliminating waivers for buyers of Iranian oil is pushing up Brent crude more than West Texas Intermediate (WTI) futures. Brent, a global crude benchmark that’s more reactive than WTI to supply disruptions from members of the Organization for Petroleum Exporting Countries (OPEC), jumped as much as 3.3% on Monday. That widened the premium for Brent’s June contract to more than $8 per barrel over WTI, the biggest since mid-March.

While U.S. oil traditionally has been pricier than Brent, the combination of geopolitical pressure and more U.S. exported oil has caused WTI to trend lower than Brent.


Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.