At the risk of sounding like a broken record, we would note that the spread between Brent and WTI crude oil dropped further at the end of last week and continues to sit at the lowest levels in four months. Although the price of crude oil has risen in recent weeks, prices of Brent crude oil have been flat to down.
In the Summer, we highlighted how the widening spread between Brent and WTI crude oil was causing gas prices to remain elevated even as the price of WTI crude oil was declining. Now, the situation has reversed itself and gas prices are flat to down even as WTI crude prices are rising! This could be an important trend to watch going forward. If gas prices can continue to decline in the next few weeks, it could set the stage for a strong holiday season and put concerns of a recession further back on the burner.