I’m a long term bull on oil, and consider $70-75 as pretty much the lower bound on prices, coupled with frequent and ultimately sustained price spikes above $100. I see WTI at $98.99 right now, and it looks like it’s finally ready for another $100 break. This will probably further narrow the current $15.17 Brent-WTI spread. You know, I generally believe in the mean reversion of historical spreads and correlations, but the mind boggles at the history of this spread! For 10 years the spread averaged zero, with about +/- $5 of noise, and then it exploded in 2011! I shudder to think how much money has been lost playing against this spread – a real lesson in risk control – I’m convinced we’ll see the spread back to zero, but if you were in a trade like this would you bail out when the spread blew through, say, a $10 stop loss to avoid further pain, or grit your teeth and attempt to remain solvent through a $27+ peak?