Brent Crude, WTI Crude, and Natural Gas Energy Study

brent.wticrude

(click for larger and clearer image)

One of the things I spoke to Richard Sandor about at the Milken Institute’s Global Conference was the relationship between WTI Crude and Brent Crude, as well as the ratio between WTI Crude and Natural Gas.

The chart above depicts the difference between Brent and WTI crude. You can notice a trend in the difference in the spread in that Brent is trading at more than $12 premium to the WTI crude. What does that say for Brent? What does is say for WTI? It may signify that Brent crude is becoming the global standard and is in higher demand.

crude.natgas

(click for larger and clearer image)

This chart depicts the ratio between WTI Crude and Natural Gas. This ratio historically trades near 10, but in recent years has been over 20. Does this ratio say something more about crude or natural gas? It may be both. What say yooze?

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