OIL

Have been researching into Brent (UKOIL) this morning and it struck me that its grossly overvalued and should be trading at lower levels fundamentally. Looking at the Brent and Crude oil charts, the spreads have been widening since 2010 and there was a time when both were trading at the same level. The spread can be explained by simply demand and supply forces where the availability of one forces the prices upwards. Technically we need a sustained move below yesterday's low which coincides with a very good support. I don't see Ukraine/Russia situation weighing in much on Brent. Currently watching the resistance at 108.20 but will definitely be looking for short positions intra-day with all factors held constant.