And Brent is going to an EU economy in rapid decline and disarray. When there is rioting and chaos in the streets, I doubt demand will be that high for fuel.
Furthermore, the Euro is falling in value vs the dollar, which dollar demonination reduces the value of both WTI and Brent.
What in the world are our refiners doing purchasing Brent for when they easily can get WTI, with a small delay, for $26 discount? Its totally insane. These types of market imbalances cannot sustain. They must correct.
Tankers of WTI should be going EAST to the UK, not the reverse.
I concur. Moreover there is a move afoot to reorient the Chicago to St. Charles pipeline that will allow oil to be sent from Cushing down to the Gulf coast via Chicago. Chicago has no use for this oil presently due to the fact that they get so much oil from Canada now. This would allow folks to buy WTI instead of Brent for gulf refining. This would return the spread down to $5 or so.