Oil benchmarks should diverge in coming year, says BAML’s Blanch

Research chief is sceptical about end of oil indexation in European gas

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The spread between the two most liquid global oil benchmarks is likely to widen later this year, as West Texas Intermediate (WTI) crude suffers a “major correction”, according to Francisco Blanch, the global head of commodities research at Bank of America Merrill Lynch.

Speaking to Energy Risk in Houston on May 22, where Blanch gave a keynote address to Energy Risk Summit USA, he said he expected WTI to fall sharply later this year. That correction was likely to hit between August and October, h

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