Widening gap between WTI and Brent increases Shale oil demand

Overall sentiment remains bullish for fossil fuel in near term

While crude oil prices for both major benchmarks, Brent and WTI, have been rising, analysts say that the price difference in both is also widening, leading to a situation of increased demand for shale oil from US. At present, Brent oil is higher by 12 per cent. However, increased shale oil production is also likely cap Brent oil prices, according to analysts.

Currently WTI is trading at $56-57 while Brent oil is aroung $63-64 a barrel.

However, the near future trend is looking bullish for both Brent and WTI.

T Gnanasekar, Director, CommTrendz Research, a risk advisory