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Why is the price difference between Brent and WTI crude oil getting bigger and bigger?
Brent crude oil, the global crude oil price benchmark, rose by more than 30%, but WTI crude oil, the US crude oil benchmark, rose by less than half.

This leads to the spread between the two benchmark prices in the crude oil market. At present, the premium of Brent crude oil over WTI crude oil exceeds $65,438+00 for the first time in more than a year. In the month of 65438+ 10, the two are almost parity.

The crux of the problem lies in Cushing, Oklahoma, USA. The city, with a population of about 8,000, is the delivery place and main storage place of WTI.

In recent months, crude oil inventories in the United States have increased rapidly. Energy information administration,

According to the data released by EIA on Wednesday, Cushing's crude oil inventory has reached 48.7 million barrels, and its storage capacity is about 70 million barrels. According to EIA, the overall crude oil inventories in the United States have also reached the highest level in the same period in the past 80 years.