North Sea Brent and WTI, the two benchmark crude oils are both sweet, light.
The most obvious is the price of the American oil benchmark, West Texas Intermediate (WTI).
So increasing production of WTI does not help world supplies of sweet light very much.
Even as WTI and Brent took different tacks, LLS and Brent had remained in lockstep.
That applies both to gas and oil, and especially to WTI and Brent benchmarks.
Below is a three month price history chart comparing the stock performance of WTI, versus MMR and IOC.
Below is a three month price history chart comparing the stock performance of BPT, versus GPOR and WTI.
Below is a three month price history chart comparing the stock performance of MVO, versus WTI and ORIG.
"The same was leveled against WTI, " said Harry Tchilinguirian, the London-based head of commodity strategy at BNP Paribas.
The complaints about Brent echo ones that have already been made about WTI.
"Traders feel a lot more comfortable with the quality in the contracts offered in Brent and WTI, " Mr. Sabo said.
Much of the hedging is carried out with WTI contracts but the actual fuel is mainly refined from pricier oils.
My commodity futures charts on oil show the players as bearish, low to mid-eighties for WTI crude going out to 2020.
The divergence between WTI prices in the Midcontinent and waterborne crude prices reflects a surge of production in Canada and North Dakota.
Furthermore, the spread between Brent and WTI prices was once again widening.
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The very fact that prices are low for WTI is what is telling us that we need more transport capacity for crude oil.
The oil flowing into Cushing contributed to a crude oil bottleneck there, and was one of the reasons that the Brent-WTI differential developed.
Bakken crude even trades at a discount to West Texas Intermediate (WTI), the benchmark oil for the US set by prices in Cushing, Oklahoma.
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In November, a pipeline deal was announced between Enbridge and Enterprise Products Partners, causing West Texas Intermediate (WTI) oil prices to jump.
The reason for this is that there is more crude flowing into Cushing (the delivery point for the WTI) than can be processed there.
But just as WTI has frailties to reduce bottlenecks to keep oil flowing internationally, the North Sea is splintered with creaking and aging infrastructure.
Canadian heavy has historically sold at a 25% discount to WTI.
While has traded upward, West Texas Intermediate (WTI) is much cheaper.
Charts on Brent crude and WTI futures show clearly defined backwardation.
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Evan Smith, co-manager of the Global Resources Fund (PSPFX), discussed the effect on WTI oil prices with Yahoo the week the deal was announced.
WTI, the U.S. benchmark, has gained more than 20% in the same time frame and has clocked-in gains in seven of the last ten trading sessions.
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Now that the glut of oil parked in the Midwest will move to the Coast, sentiment improved and WTI pricing moved more in line with Brent crude.
Commodities funds that hold WTI are also scratching their heads over what to do about buying and selling an oil that no longer reflects the wider global market.
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