Brent-WTI Spread Narrows to Below $1 for the First Time Since 2010

by Nick Bond, KPI Bridge Oil
Thursday July 18, 2013

A better than expected drop in the jobless claims report helped send stock indexes skyward, taking WTI along with it.

Figures released by the U.S. Labor Department showed weekly jobless claims fell by 24,000 to a seasonally adjusted 334,000, it's lowest level in 4 months and topping economists estimated drop by 11,000.

Equities took this news in stride and the S&P index reached a record intraday high on top of better-than-expected earnings report.

With U.S. crude production at its highest level in 20 years and the EIA reporting a third consecutive weekly drop in crude inventories, WTI reached a 16-month high and narrowed the Brent-WTI spread to below $1 for the first time since 2010.

All of this coming on the heels of Ben Bernakes latest statements emphasising monetary policy will remain accommodative to the growth of the economy.

WTI rose $2.04 settling at $108.04/BBL while Brent increased $0.56 settling at $108.70/BBL. Bunker prices remained stable in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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