Brent Premium to WTI Reaches Widest Point in Eight Months

 West Texas Intermediate’s discount to Brent reached an eight-month high as rising inventories weighed on U.S. futures and limited progress in Iran nuclear negotiations supported the European benchmark.

The spread widened to $16.21 from $14.64 yesterday. WTI declined as rising domestic output added to inventories at record highs for this time of year. Brent reached a six-week high as envoys haggled over language in their efforts to ease the standoff over the atomic ambitions of Iran, whose oil exports have been reduced by sanctions.

WTI for January delivery slid 60 cents, or 0.6 percent, to $94.84 a barrel on the New York Mercantile Exchange, after settling yesterday at the highest since Oct. 31. Trading was 12 percent below the 100-day average. WTI’s weekly gain of 1.1 percent was the first since Oct. 4.

Brent for January gained 97 cents, or 0.9 percent, to $111.05 a barrel on the London-based ICE Futures Europe exchange, the highest settlement since Oct. 11. Brent has gained 3.9 percent in three days.

The Brent-WTI spread increased for a third day to $16.21, the most since March 14. The gap has expanded by $5.69 in the past two weeks.