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- May and June WTI Brent arb
The Brent has gained quite a bit on the WTI today with both the May and June arb differentials showing momentum that suggest that the Brent can gain further.
The May arb is near to testing the daily chart's lower bollinger band while the June arb has already done so today.
For the May arb, support below for the WTI comes in at -$8.25 then at -$8.75 and then at the recent low at -$9.23. Upside resistance for WTI vs Brent comes in at -$5.85.
For the June arb, the WTI support level is the recent lows at -$7.97/-$8.00. Here resistance for the WTI vs the Brent is seen at the same level as in the May arb at -$5.84.
Several recent developments have seen WTI weaken versus Brent: High freight rates for shipping US crude from the Gulf Coast has made US crude less desirable, the concerns over crude supply from the Mideast have a greater impact on Europe than the US, the prospect for US crude production to increase given the rise in oil prices is likely also weighing on WTI values versus other global crude grades.
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