"what's the main reason this spread is not good?" It can have alot of directional risk and large trading ranges, in some eyes it defeats the entire purpose of spread trading.
Nice article regarding the recent WTI_Brent disparity http://www.eia.doe.gov/todayinenergy/detail.cfm?id=290
Looks like im the only trading this Is the spread going to retrace! Brent looks awfully weak today. April spread is currently -12.68 after touching -16.52 2 days ago!
Big reversal over the last two days. Spread has come off from its high 2 days ago of -7.81 and today printed a low of -12.99 (a range of over 5 dollars!) :eek:
To me this thing is like the Bund vs. US Ten Year - why bother. I would never slight anyone who had this thing nailed cold and could consistently take money out of the thing, but honestly, there are certainly about 500 'better behaving' futures spread combinations out there.