In the 3Q of 2011 with the peak of supply disruption fears as born out of the Arab Spring and the peak of the US export and Gulf coast bottlenecks pushing down on WTI (USO, quote), we saw the spread go to $27.88.
This morning as global demand concerns are added to the obvious supply story we see Brent underperforming WTI by about 110bps taking this widely watched spread between the two blends to under 25 cents.
With this spread at zero the competitive advantage that US refiners held over the world has crumbled. Ad din the glut of refined product that has come from the glut of crude and you get a place where the refiners as once a place to hide, no longer are holding up. We would continue to be out of or positioned to the short side of refining.