A motorist pumps fuel into her vehicle at the Sunoco station January 6, 2015 in Flint, Mich.Joshua Lott/Getty Images
West Texas Intermediate oil became more expensive than Brent for the first time in a 1 1/2 years amid a weak European economy and signs that U.S. crude export controls will loosen.
WTI traded higher than Brent today for the first time since July 2013, based on February intraday prices. It averaged $6.64 less than Brent last year, and traded as much as $15.45 lower than its European counterpart on Jan. 13, 2014.
Opinion polls showed Greek Prime Minister Antonis Samaras hasn't narrowed the lead by his top opponent from the Syriza party, boosting concerns that a change in political leadership will spur an exit from the euro area.
"There are two key reasons for the rapid close of the Brent-WTI spread, with the first being the problems in Greece and Europe as a whole," Thomas Finlon, the Jupiter, Florida- based director of Energy Analytics Group LLC, said by phone. "The other is the increasing likelihood that the U.S. will allow a greater flow of crude exports."
The 40-year-old ban on most U.S. crude exports is set to be relaxed after Mexico's state-owned oil company asked for an exception. Petroleos Mexicanos said last week that it's in talks with the U.S. Commerce Department to import 100,000 barrels a day of light crude to increase Mexico's gasoline production and improve refining.