Courtesy of Mish.
Brent vs. WTI
Brent WTI Spread
Note the drop in the spread between the US West Texas Intermediate (WTI) crude future and the Brent future, a benchmark price of European, African and Middle Eastern oil.
The futures diverged sharply in late 2010 and are now converging.
US Crude Exports to Canada Triple
Bloomberg reports Brent Pressured by U.S. Tripling Crude to Canada.
U.S. oil exports are poised to reach the highest level in 28 years as deliveries to Canada more than triple, helping bring down the price of the global benchmark Brent crude relative to U.S. grades.
The shipments will rise to at least 200,000 barrels a day by the end of the year, according to Ed Morse, head of global commodities research at Citigroup Global Markets Inc. Exports were 59,600 in 2012 and haven’t averaged more than 200,000 since 1985. The U.S. restricts companies from sending American crude abroad, with Canada an exception.
The premium for Brent, used to price European and West African crude, over U.S. West Texas Intermediate narrowed to less than $8 a barrel this week from $25.53 in November. …
