There's a lot being written about how US crude inventories in Cushing, Oklahoma are abnormally high due to refinery issues and general oversupply, which has crushed the front of the WTI curve and the WTI-Brent spreads.
But the other side of the WTI-Brent spread issue is tight crude supplies in Europe. The latest monthly report from the IEA shows European crude stocks 28.7 millilon barrels below year-ago levels, and near the bottom of the five-year range.
While the WTI oversupply situation is clearly the biggest driver of the recent pricing anomalies, tighter European stocks have kept the front of the Brent curve flatter than it otherwise might be during a period of heavy refinery maintenance.
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