Brent Crude ($BRENT) surged above $110 this week and WTI Crude ($WTIC) moved above $96, but the spread between the two remains wide. The chart below shows Brent trading some $18 higher than WTI. The indicator window shows the $BRENT:$WTIC ratio nearing 1.2 for the first time since early March. This is helping the refiners because they buy their raw material (oil) at WTI prices and sell their refined products at Brent prices. Note that Valero (VLO) is up over 35% the last two months.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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