NEW YORK (TheStreet) -- I was talking to Joe Deaux about the fast drop in Brent oil prices over the last two days that was accompanied by the rise in our own benchmark West Texas Intermediate prices.
I think it's important for investors to keep an eye on both benchmarks because only looking at one can give an investor a jaded and wrong view about the trend in oil prices. If, for example, you just looked at the price of WTI oil over the last two weeks, you'd get the impression that oil prices were headed most significantly higher. But if you looked at the action of Brent prices over the same period, you'd get the absolute opposite impression.
What's actually happening is that these two major oil markets, which have been disconnecting for months in price, are finally finding some connectivity -- in Europe because of some less-than-stellar economic reports and in the U.S. because of the solving of some of the transport issues that have plagued the movement of crude oil here in the U.S. from the mid-continent down to the Gulf Coast.
So, for right now, neither a strongly rallying crude market nor a sharply falling crude market are really the case. For crude, there's sort of an "equalization of pressures" going on right now.