Brad Zigler

Which Is Headed Higher: Gold or Oil?

Much of the WTI-Brent arbitrage is related to the time value of money. WTI is a true spot market where oil is immediately deliverable; Dated Brent is actually a short-term forward contract in which oil is subject to a load-in schedule.Because of this, the current US glut and widening contango market exacerbates the Brent time differential.

There's also shipping rates to be taken into account. Delivery of WTI is by pipeline. Brent's FOB shipboard,