WTI/Brent spread impacts commodity index returns
In a report published this week, Barclays Capital has detailed the heavy price index investors have paid for the recent dislocation between global oil price benchmarks, with returns reduced by up to half since early 2010.
West Texas Intermediate (WTI) typically trades at a premium to Brent because it is a higher quality crude. However, this relationship has been reversed over the past 16 months and the divergence between the price of WTI and Brent reached an all-time high of $23.57 this month.
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