A wild expiration day for the December WTI contract and even a wilder day for the Brent vs. WTI oil spread. Brent initially was selling off over optimism from the talks with Iran surrounding its nuclear program.
Oil is falling after tropical storm Karen and now faces the stormy seas of U.S. politics. Production is now coming back on-line and except for being oversold the bulls are finding it hard to find much to hang their hat on.
The Brent/WTI spread has continued to widen with a strong surge to the upside occurring during yesterday’s trading session. The spread has been in a short term widening pattern since the spread hit parity in mid-July.