Monday, March 28, 2011
For background on this issue, see here (also see some good links commenters added). This post is just an update that the situation continues, though it's not quite as pronounced as it was in February. The graph above shows daily spot prices through March 22nd (last Tuesday).
One interesting question is this: now that they've diverged, which spot price appears to have a stronger influence on US oil product prices? For gasoline (the most important product by far) the data looks as follows (with the most recent data for each series circled):
As you can see, both series are pretty much within the historical envelope, but Brent lies closer to the edge of it. So the continued habit of US media stories quoting WTI based prices is not crazy.