Global Value Investing

[Drexion2004]

You need to focus on Brent, not WTI. The spread has been tightening simply because US sources are selling to Europe as fast as they can...Pipelines have been expanded to accomplish this faster, etc (ongoing process).

I completely ignore WTI personally, gasoline goes based on Brent anyhow.

Oil is not a good barometer of the economy though, not at all. Its too manipulated by traders / geo-political events / natural events like hurricanes / etc.

Copper price is a better metric to use, although it is also imperfect since it is geared more towards emerging-markets and not Europe/US economic factors.

-Fernando