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A change to the weightings in the widely tracked S&P GSCI commodity index could lead to a...

A change to the weightings in the widely tracked S&P GSCI commodity index could lead to a further widening of the Brent-WTI spread that is already running at very high levels. The disconnection between the two contracts, and their susceptibility to localized supply-and-demand issues, could force traders to start looking around for a new benchmark against which to price oil.
Comments (2)
  • wigit5
    , contributor
    Comments (3968) | Send Message
     
    so load up on PSX?
    7 Nov 2012, 10:52 AM Reply Like
  • trprof
    , contributor
    Comments (36) | Send Message
     
    New benchmark? Not likely. WTI is and has remained the benchmark and will be for a long time to come. Not sure where all the anti WTI sentiment comes from. On the Brent side, contract spec and delivery problems may lead to a Rotterdam or other replacement.
    7 Nov 2012, 11:06 AM Reply Like
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