The narrowing of the spread or difference between the price of WTI and Brent is supported by several factors that have: Lowered Brent (North Sea) prices because Brent-quality crude imports into North America have been displaced by increased U.S. light sweet crude production, reducing Brent-quality crude demand. read more
Like Brent, most of the oil extracted in the US – especially in Texas and North Dakota – is light and sweet, making it ideal for refinement. In terms of quality, WTI and Brent crude are very similar. For many years the difference in price between Brent and WTI was minimal – but since 2011, the two benchmarks have diverged. read more