Brent-WTI price spread at two-year low

Crude futures were under pressure in May from seasonally weaker demand and a surplus of light, sweet grades in Europe

At the beginning of May, the spread between Brent and WTI prices fell to its narrowest level in two years, to around $7.75 per barrel. This is compared to around $11.35/b in April. Brent and WTI prices were trading at around $103/b and $94.50/b, respectively, on 28 May. The International Energy Agency (IEA) raised its global oil demand forecast by a marginal 65,000 barrels per day (b/d) for 2013, to 90.6 million b/d. This was because of higher estimates for German gasoil demand in 2012. The IEA’s global growth forecast for 2013 remains unchanged at 795,000 b/d. Lower crude demand in China, indications of a sluggish economic recovery in the US and weak European fiscal data put pressure on Bre