Brent oil price spread hits record against WTI contract

Brent oil prices open today’s trading session back around $116 a barrel after hitting a record price spread premium to the US WTI contract following US Fed comments that there are no plans for more bond buying to stimulate US economic growth.

Latest Brent Oil Price

In London, Brent oil futures for August 2011 delivery was trading at $116.02 a barrel, 06.30 GMT this morning on the ICE Futures Exchange.

Brent Oil Price Spread to WTI

The difference between the Brent oil futures contract traded on London’s ICE Futures Exchange and US WTI oil on the NYMEX widened to end the session at $22.63 a barrel on Thursday, above the previous high of $22.29. The spread touched $23.59 in trading early this morning, the highest level ever.

The Brent to WTI oil price spread may widen to $40 a barrel or more between now and the middle of 2012, according to Edward Morse, head of commodities research at Citigroup Global Markets.

Oil prices declined in early trading today after Bernanke told lawmakers that the US Fed isn’t making any new bond buying proposals.

“The Bernanke statements are weighing on the market. Concern about the US economy has a much bigger impact on WTI than Brent oil prices.” said Jason Schenker of Prestige Economics.

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Brent oil price spread hits record against WTI contract