WTI rally offers limited upside to oil producers, say analysts

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Global benchmarks offer slim pickings, say analysts

Analysts say the recent rally in West Texas Intermediate (WTI) crude oil, which has sharply narrowed the spread between the benchmark and North Sea Brent crude during the past month, offers few opportunities for oil-producing firms. Although producers might be expected to benefit from rising prices for North American crude, analysts argue the recent rally will be short-lived, while the impact of backwardation may also outweigh the benefits of higher front-month WTI. One senior analyst at a Eu