Brent and WTI oil brands spread falls below $ 5

Baku. 24 November. REPORT.AZ/ The difference between Brent and WTI oil prices (spread) falls below $ 5/barrel. 

Report informs, on September 26, the difference began to decline after reaching the maximum level of the year - $ 8.18/barrels. The main reason for the increase was the additional oil reserves that resulted from non-operating oil refineries due to hurricanes in the United States.

As the consequences of hurricanes continue to eradicate, WTI oil began to climb and approached to Brent price.

Notably, on February 28, the WTI even sold at $ 0.64/barrel higher than Brent crude price.

Analytical Group of Report News Agency predicts that WTI oil price will continue to rise and spread between Brent oil will be $ 3 bbl at the first stage and as a result of accelerating US economy and increase in oil demand WTI price will again exceed Brent.

Notably, although last week, the number of active oil wells in US was 871 units or 54.1% lower than record level recorded in October 2014 oil production in the U.S. reached a historic high with 9,658 mln barrels / day.

According to Standard Chartered bank, Permian Companies in main oil region of the United States taking advantage of rise in prices, hedged 72% of production volumes in 2018 and sold at current prices.