Brent-WTI Spread Expected To Narrow As Iran Tension Eases

Brent crude may fall this week as tensions between Iran and the West ease further, raising expectations that the OPEC producer may be close to re-entering the export market.

A pullback in Brent may help narrow the premium with its U.S. counterpart West Texas Intermediate (WTI) crude futures – which currently stands at just under $11 a barrel – to between $5-7/barrel, according to UBS.

In a November deal with the United States, France, Germany, Britain, China and Russia, Iran agreed to suspend its most sensitive nuclear activity in exchange for a limited easing of sanctions that are battering its oil-dependent economy.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu