The the Financial Times (via FastFT) have a nice piece up just now on the narrowing spread between brent and WTI oil prices. FastFT is a subscription service (and well worth it), gated, but, in brief:

Stuart Kirk, managing director at Deutsche Bank, said:

  • A riveting side story to the slump in oil prices this year is that Brent is down 50 per cent more than WTI,”

Fadel Gheit, an energy analyst with Oppenheimer, said:

  • The narrowing of the crude differential indicates a sharper drop in Brent on oversupply by OPEC and others, coupled with lower than expected demand on slower economic growth in China and slower recovery in Europe.
Financial Times FastFT graph on WTI and Brent oil prices 16 October 2014