WTI-Brent Behavior: Good FT Article

[drm7]

There was a good article on FT-Alphaville today regarding both the WTI-Brent spread as well as the change in the shape of the forward curves - WTI is backwardated for the first time since 2008.

http://ftalphaville.ft.com/blog/2011/10/25/711066/wti-is-no-longer-a-burden-to-passive-investors/

It will be interesting to see if funds that play the "Goldman roll" get caught out.

 

[heech]

I thought there was a change in fundamentals, with new satellite photos showing a significant reduced excess inventory at Cushing. The article above didn't mention that at all... interesting.

 

[blackstormcap]

thanks
what is it vendor/data source?
http://av.r.ftdata.co.uk/files/2011/10/WTI-backwaradtion1.jpg

 

[bone]

A good behavior is for rich/cheap mean reversion types to not trade a pure divergence play.