The enclosed chart shows the spread (differential) between Brent North Sea Oil and NYMEX Crude Oil.
In July 2013, Brent plunged to nearly par (zero premium) to NYMEX, but then recovered in a big way to lead the spread back to a Brent premium of $19.29 in Nov 2013.
Since then, the spread has contracted again, with Brent losing ground to WTI into the very narrow April-June Brent premium spreads of $3.34 and $5.29.
However, during the past week, with the advent of escalating tensions and military confrontations in Iraq, the premium of Brent to WTI has widened to $8.00.
Judging from my daily momentum gauge of the spread, the premium of Brent Oil (BNO) to W&T Offshore Inc. (WTI) is poised to move considerably higher above resistance at the 200-day EMA, now at $8.50, on the way to $14.00-$15.00 next.
Last in BRENT: $113.90... WTI: $ 105.55