Market structure in the crude oil market are pieces of a jigsaw puzzle that can provide clues about the path of least resistance for the price of the energy commodity. The Brent-WTI spread is a location, quality, and political risk spread, Crack spreads reflect the price differential between petroleum and oil products. Term structure is the shape of the forward curve. Trends in the pieces that comprise the market’s overall structure can lead to a robust picture of supply and demand.
Technical factors when it comes to price action, tell us about herd behavior. When