The price of WTI oil futures has exceeded the value of contracts for Brent


Moscow. December 16. Oil prices continue to fall on Wednesday, with the cost of the February futures on WTI already exceeds the price of similar contracts for Brent, Bloomberg reported.

So, February futures for Brent crude on London’s ICE Futures exchange 14:47 Moscow time bargained at level of $38,01 per barrel. At the same time, the futures price for WTI for February in electronic trading on the new York Mercantile exchange (NYMEX) was $38,34 per barrel.

The January futures for Brent, the validity of which expires on Thursday, traded at $37,66 per barrel, $2,05 (0,79%) below the level of the previous session. The price of futures for WTI for January fell to $0,22 (0,59%) – to $37,13 per barrel, trading of these contracts end on December 21.

“We probably will see a tug of war between prices for Brent and WTI, until they find a new equilibrium level, – noted managing Director of the consulting company Petromatrix GmbH Olivier Jakob. – This, at least, would mean that more crude oil will not trade at a discount relative to Brent”.

The spread between the prices of Brent oil and WTI reached $to 27.88 per barrel in 2011, in the current quarter, the difference averages $2,74.

As reported, leaders of the U.S. Congress reached a compromise on a bill that would remove the ban on crude oil exports from the country. The vote on the bill in the Congress will be held on Thursday, after which legislation will be passed in the Senate.

The lifting of the ban on oil exports from the U.S. will allow American companies to supply extracted raw materials to new markets. But the appeal of American oil will depend on its price relative to other varieties, in particular, of the spread between Brent and WTI.

WTI should be at least cheaper than Brent by $4 per barrel to the lifting of the export ban to be effective, experts say the Energy Aspects.