The price gap between the world's two most-important crude-oil
benchmarks shrunk to its narrowest in more than three months Monday, as
an expanded U.S. oil pipeline looks set to help relieve a domestic
oil-supply glut.
The difference between U.S.-traded West Texas Intermediate crude oil
and Europe's Brent crude stood at $18.21 Monday, the narrowest since
September.
The price spread has shrunk by 6.4% since the beginning of this year,
due in large part to the announcement by pipeline operators Enterprise
Products Partners LP and Enbridge Inc. (ENB) that 400,000 barrels a day
of oil will begin to flow through their Seaway Pipeline by the end of
this week.
The pipeline, which initially transported 150,000 barrels a day and
was reversed earlier this year, transports oil from the oil-transit hub
of Cushing, OK, to Gulf Coast refineries. Investors are betting
that the pipeline will help lower record oil stockpiles in Cushing and
raise the price of U.S. crude against its European counterpart.
http://www.calgaryherald.com/business/faces+uncertain+path+markets/7782813/story.html
ReplyDeleteanon 1
And so it goes.
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