The Brent/WTI spread has historically ranged between $4/bbl and $8/bbl, but it can expand or contract based on factors related to U.S. and international supply and demand conditions. For example, the Brent/WTI spread hit nearly $14/bbl in April 2011 when protests sparked market fears of significant oil supply disruptions in the Middle East.

Brent crude prices have fallen sharply. Analysts expect the prices to sink towards USD65 per barrel from nearly USD70 now. How will this impact OMCs and what are the implications for exploration and refining companies?

The U.S. benchmark hit a nine-month low of $69.19 earlier in the session after plunging more than 4% on Tuesday. Prices are under pressure as the market is worried that supplies will rise as demand falters.