In 48 hours, WTI and Brent will be able to hedge together
On April 1st at 17:00, $CL (WTI crude oil) will go live.
**On April 1st at 17:10**, $BZ (Brent crude oil) will go live.
On April 1st at 17:20, $NATGAS (natural gas) will be the finale.
Geopolitical pulses have driven oil prices up to $119 in March, but the IEA predicts a surplus of 3.73 million barrels per day by 2026, and Goldman Sachs sees an average price of $52-56. A surge will always retreat.
Arbitrage boundary: Go long WTI/short Brent when the WTI-Brent spread ≤ $3, and reverse when the spread ≥ $7. The spread is clearly traceable in the range of $0-12.
Two crude oils, one spread, two ways to go. The hedging framework has added another money printing machine.
Want to know the specific grid parameters? Comment “crude oil” in the comment section, and I'll send it to you.