Description: Oil prices are down more than 20 percent since mid-March. Yet that hasn’t erased a strange anomaly in the market: the gap between two essentially identical types of oil. North American light, sweet crude, also known as West Texas Intermediate, trades just below $84 while its international equivalent, known as Brent, is priced at $97.

Source: Businessweek.com

Date: Jun 15, 2012

Link: http://www.businessweek.com/articles/2012-06-15/oil-prices-keep-falling-but-a-strange-gap-persists

Questions for Discussions:

• Why is there a price difference, according to the report?
• What is the trading opportunity here?
• How risky is this trading activity?