07DEC2017 - NEWS - Oil Traders Should observe US Oil Exports

Brent crude oil (BNO) active futures were priced $5.24 higher compared to WTI (West Texas Intermediate) crude oil (USO) (UCO) active futures on Dec 5 2017. “Brent-WTI spread.” may be defined as the price difference between Brent and WTI grades of oil. On November 28, 2017, the Brent-WTI spread was $5.81. US crude oil exports stood around 1.4 million barrels per day for week ending on 24 Nov 2017. As compared to same interval last year, the US oil exports rose by 0.9 million barrels per day.

A positive spread refer to Brent price higher than WTI. Positive spread is not considered good situation for US oil producers who are selling in domestic market. However refiners of US can increase their profits by using cheaper US crude oil to feed their refineries.