WTI-Brent Spread Over $11 for First Time in Years

[Seleskya + 50]

This benchmark spread is killing it right now. Any insights on the nature of the spread. It's hit over $11 for the first time since 2015: 

https://www.ft.com/content/d74c3dd0-64d4-11e8-90c2-9563a0613e56

[Rodent + 1,424]

This is pretty significant. It definitely makes WTI more attractive even if you include extra transport costs. I'm not sure I agree with their conclusion that pipeline capacity constraints in the US are causing the low WTI prices in relation to Brent. That doesn't make sense to me. 

Pricing disparity theories, anyone? @William Edwards@Dennis Coyne@Mike Shellman@Tom Kirkman@TraderTate

[Tom Kirkman + 8,860]

Nick Cunningham addressed this on the Oil Price main news site yesterday:

Explaining The Double Digit WTI Discount

WTI, for its part, is trading at a multi-year low relative to Brent. As of May 31, WTI was down below $67 per barrel during midday trading, dropping to an $11-per-barrel discount relative to Brent. Again the blowout in the spread is the result of surging shale production at a time when supply is restricted elsewhere in the world.