Oil, Oil.....WTI vs. Brent

Good morning folks.  Oil markets are in weird place again and the WTI/Brent relationship is out of whack over the last 2 days.  Since the close on April 1st, WTI is ~-.17% and Brent is ~+2.35%.  Now, I know there is the mess in Libya and Rebels are trying to sell oil to raise funds for fighting Quaddafi, Kaddafi, Gaddhfi....however you spell it.  But this move seems a little too much, too quickly.  I have been long the WTI/Brent spread since the middle of March and continue to be long, I am now long May WTI/Brent on the ICE.  I added to my position this morning as I feel that the physical arb's will come in an close this to a more acceptable level again.

The above chart is the spread based in bps difference from the close of April 1st, 250 bps in less than 2 trading sessions is a lot and worth a fade in the -13.75/-14.00 range and should be good for .50/1.00 in the short term.  I am looking for this spread to revert back to the -10.00 range in the next 6 days before expiration on Thursday April 14th.  Below is a chart displaying the actual price data.

Be Blessed,

Hemi