The European benchmark Brent differs in price from the U.S. benchmark West Texas Intermediate (WTI), although the two tend to move up and down in tandem.
Lately, worries about a U.S.-China trade war and a slowing global economy have pushed down the price of Brent from $74.57 a barrel on April 24 to $70.16 recently, according to data from Bloomberg. WTI prices followed the same pattern.
However, there's an important difference: There's a shortage of Brent, but there is no lack of WTI.
Put simply, Brent prices should be higher.
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1. Blame Russia
2. North Sea Blues
3. U.S. Sanctions
Saudi Sabotage Impact?
"The USS Lincoln Carrier Strike Group is being deployed to the region," states a recent report from New York-based Academy Securities. "The Group will likely continue to ensure safe passage."