27th February 2015
Brent crude oil rebounded on Friday, after tumbling on Thursday, sent higher on signs of improving demand and supply disruptions.
However, the main talking point here is the spread between Brent and WTI, which is at its widest since January 2014.
The price of US crude oil is a couple of dollars off its lows, however, Brent has taken off and is set to record a monthly rise of 15 per cent, which will be its biggest monthly gain since May 2009.
WTI also looks set for its first monthly rise in eight months, however, only with an increase of just under two per cent.
It means that Brent crude oil is currently trading at a premium of about $12 to US crude, as stockpiles of oil in America continue to swell.
But Brent crude has been boosted by positive sentiment in Europe, signs of recovery in the world’s largest consumer of energy, China, and a disruption to production and exports in Libya and Iraq.
It remains to be seen whether Brent will maintain a hold above $60 per barrel levels, as underlying fundamentals, such as the global supply glut, will continue to weigh on oil.
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