WTI Brent Arb

The WTI Brent arb momentum currently favors the WTI -although the pattern of the past few months suggests an overall trading range of basically $1 -between $3.80 and $4.80 -almost for both the October and November months.

The arb spiked to a high about 2 weeks --testing the upper bollinger for the arb. High U.S. crude exports have kept the arb narrower in recent weeks than was seen earlier in the summer.

We see support for WTI on the October arb at $4.39 and then at $4.54. Resistance to the upside for the WTI is seen at the $4 area.

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