Brent Vs. Crude Divergence

If you hadn't noticed, Brent and WTI crude oil were pretty correlated historically, but since 2011 something weird happened.





Brent crude oil started to move up, while WTI crude oil was flat (Chart 1). This is mainly caused by the increased oil supply in North Dakota due to the applied technique called "fracking". This increased oil supply drove down the WTI crude oil price, while Brent crude oil (tied to the Gulf Coast) has increased.




Chart 1: Brent VS. Crude

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