From The Motley Fool
By Sarfaraz A. Khan
By Sarfaraz A. Khan
The Brent crude-West Texas Intermediate (WTI) spread has fallen to its lowest levels in more than two and a half years to $4.31 by the end of first week of June. This after touching this year’s peak of $23.19 in the first quarter, which shows a decline of more than 80%. The spread represents the difference between Europe’s Brent crude and the WTI crude, which trades at the New York Mercantile Exchange. This collapse of the difference between two of the world’s leading-traded crude grades will create problems for some refiners, such as HollyFrontier (NYSE: HFC), Marathon Petroleum (NYSE: MPC) and Valero Energy (NYSE: VLO).
The drop in the gap, shown in the picture above, is coming on the back of
