March and April WTI Brent arb

Overview

Both the March and April WTI Brent arbs are testing the lower bollinger bands on their respective daily chart. In the case of the March arb, the momentum is oversold for the WTI against the Brent crude.
Thus the momentum and the move below the lower bollinger band are cautioning sellers of the WTI that the arb may rebound somewhat, and see narrower values for the relationship.

The widening of the arb is not surprising--given the different factors currently surrounding the crude oil market.  The US oil market is seen loosening some as the market sees Venezuelan crude oil becoming more available as the US eases sanctions. While the European market is concerned with supply developments surrounding Iran and Russia. Iran supply concerns are stemming from the increased protests being seen there and Russian supply concerns are stemming from the continued Ukrainian attacks against Russian energy infrastructure.

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