U.S. crude’s discount to benchmark Brent oil has narrowed by about a third from 13-month highs hit two weeks ago but the spread could widen again from a combination of chart-inspired trades and fundamentals pointing to U.S. oil oversupply. Since oil prices began tumbling in June, London-traded Brent has often held up better than U.S. crude, save on a few occasions, the most notable in January when the gap between the two hit a 4-1/2-year low of around $1 a barrel. By end-February, the Brent-U.S. crude spread, one of the highest volume trades in oil, had widened to a 13-month high of $13. Technical trading patterns now show it headed toward $15, a level it was last at in mid-January 2014. According to Elliott wave and Fibonacci ratio patterns, the spread should widen to an area between $14.24 and $16.81, after a renewed push past $13 last […]