WTI-Brent 16-Month Low Pits Goldman Against BofA
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The collapse in the price difference between the world’s two most-traded crude oil grades is fulfilling a prediction Goldman Sachs Group Inc. has held for more than a year. Bank of America Corp. says it won’t last.
Brent crude’s premium to West Texas Intermediate slumped more than 50 percent to a 16-month low in the past two months, falling to less than $10 a barrel for the first time since January 2012. The differential narrowed to as little as $8.66 a barrel today, after rising to a record $28.08 in October 2011. Brent was typically cheaper in the past decade, averaging $1.28 a barrel less than WTI, according to data compiled by Bloomberg.