In June, NYMEX forward curve for Brent-WTI spread widened but not by much compared to the previous month. Brent for August delivery settled at 103 USD/bbl whereas WTI traded at 95 USD/bbl for delivery in the same month, a premium of 7 USD/bbl for the European benchmark grade. This is almost 1 USD/bbl higher than the previous month for August delivery. The Brent-WTI Spread of the NYMEX Forward contracts averaged 8 USD/bbl in June, a difference of 2 USD/bbl compared to May.
NYMEX WTI futures slumped after the U.S. Energy Information Administration reported U.S. crude stockpiles remained near the highest level in more than 30 years. Also, WTI is heading for another decline this quarter amid speculation that the U.S. Federal Reserve will taper its stimulus program, which promoted further economic growth for the world’s biggest oil consumer. Brent crude futures held above 103 USD/bbl, while a glut of oil at Cushing has kept U.S. oil prices below Brent prices for some time.