07.10.2013 - A known unknown for oil prices
In contrast to much of history, WTI has traded at a discount to Brent crude oil pretty consistently since August 2010 as rising U.S. output led to gluts in the Midwest. In the 12 months ended in July, Cushing inventories averaged 47 million barrels, up from 33 million in the same period ending in July 2010. WTI's discount to Brent peaked at almost $27 a barrel last September. By July, though, it was catching up fast. The reason: New pipeline capacity was opening up, providing options for draining the oil toward the coast, where it could be refined for exporting at global, or Brent-like, prices. Cushing inventories have dropped by a third since the end of June...............................................Full Article: Source
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