Brent-WTI spread and downstream stocks
Any expansion in the Brent-WTI spread could benefit US refineries (CRAK) and cause their input costs to fall. US refiners’ output prices are benchmarked to stronger Brent prices. A narrowing spread has the opposite impact. On February 15, the Brent-WTI spread expanded to $10.66—the widest level since October 19. On February 15–March 25, the Brent-WTI spread fell by ~$2.3, while the VanEck Vectors Oil Refiners ETF (CRAK) fell 0.6%.