Posted by lessarda on 16th of Oct 2011 at 07:52 pm
WTI is on balance higher quality (which is why it has almost
always traded at a premium to Brent), but Nigerian & Libyan
blends are very high quality within Brent -- with Libyan off the
market and strife in Nigeria with Boku Harem, there are tighter
supplies of Brent. On the flip side, refiners are closing on the
East Coast because Cushing is the central distribution point for
WTI -- plenty of supply in Cushing from Canada & NoDak, but no
easy way to get large amounts to Houston or the East Coast or
Europe, which would bring Brent & WTI back into their
traditional spread.
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More a supply & demand equation with no central distribution for Brent...
Brent oil breaks resistance
Posted by lessarda on 16th of Oct 2011 at 07:52 pm
WTI is on balance higher quality (which is why it has almost always traded at a premium to Brent), but Nigerian & Libyan blends are very high quality within Brent -- with Libyan off the market and strife in Nigeria with Boku Harem, there are tighter supplies of Brent. On the flip side, refiners are closing on the East Coast because Cushing is the central distribution point for WTI -- plenty of supply in Cushing from Canada & NoDak, but no easy way to get large amounts to Houston or the East Coast or Europe, which would bring Brent & WTI back into their traditional spread.