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Spread Between WTI & Brent Oil Widens

April 23, 2015 at 0:25 by Vladimir Vyun

Crude oil rallied during the early Thursday’s session. While both WTI and Brent crude rallied, the spread between two grades widened as they were affected by different events.

The rally of Brent oil was fueled by infighting in Yemen as Saudi Arabia resumed its airstrikes on Houthi positions. Yemen itself is not an important oil-producer, but the conflict can threaten supply from other major Middle Eastern exporters, particularly Saudi Arabia.

The news benefited WTI crude as well to some degree, but the American grade of oil had also a negative factor in the form of a bearish supply report from the Energy Information Administration. The EIA reported that US inventories expanded by 5.19 million last week, noticeably more than the forecast increase of 2.7 million.

June futures for delivery of WTI crude oil went up 0.27 percent to $56.31 per barrel as of 00:18 GMT on NYMEX today. At the same time, contract for Brent crude rose as much as 1.05 percent to $62.73 per barrel on ICE.

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