Brent-WTI Crude Spread to Tighten, Prosper's Bauer Says

Scott Bauer from Prosper Trading Academy discusses the impact of OPEC and Saudi output cuts on Brent prices, highlighting the backwardation trend. He explores market speculations, technical levels, and the trading strategies around the Brent and West Texas spread. Additionally, he touches on the Brent and Dubai spread, noting the influence of risk premiums and political factors on pricing.

What impact do output cuts by OPEC and Saudi Arabia have on the price of Brent crude oil?

What technical levels are traders focusing on regarding Brent crude oil?

How has the spread between Brent and West Texas Intermediate (WTI) crude oil changed over the last six months?

How do traders react when the spread between Brent and WTI reaches certain levels?

What factors are contributing to the political risk premium in the price of Brent crude oil?