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Post by 3020 on Aug 25, 2011 6:27:38 GMT -5
Care to take a crack at explaining why Brent cude is trading at +25 to Light Sweet.
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Post by looter on Aug 25, 2011 6:44:24 GMT -5
I really thought Quadafi exiting stage-right was gonna narrow the spread. (Not a change in flows but a change in risk premium) North African oil basis effects Brent more-so cuz of transportation cost.
I gotta saddle Hercules and rope a cow quick. Bitch won't let her calf suck. I envy people who don't calf in midst of prairie. When I get back I will post up oil bids from around the world.
The big question is spread between Louisiana Sweet at the gulf and Brent. Louisiana Sweet is the true benchmark for America, because its what the vast majority off our refiners actually pay. It's dumb that Louisiana Sweet is not quoted by financial networks.
I will also post inventories in Europe, which last I saw were drum-tight.
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Post by thirsty on Aug 25, 2011 7:17:59 GMT -5
Ever since those stupid canadians built a pipeline to Cushing the extra supply has shown up as a $20 + rebate in WTI vs. Brent. Pipeline brought about an extra half million barrels a day to the Oklahoma starting in summer of 2010 if I recall correctly, that spread with Brent started shortly after.
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Post by 48 on Aug 25, 2011 12:16:03 GMT -5
EPD was going to build a pipeline from Cushing to Houston, but that deal fell apart.
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Post by 48 on Aug 25, 2011 12:18:31 GMT -5
r3020: WTI which is better oil than Brent trades at a discount cuz shale oil and shale gas with NGL's has been a smashing success, and there is a glut of oil at Cushing.
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Post by looter on Aug 25, 2011 12:31:29 GMT -5
r3020: WTI which is better oil than Brent trades at a discount cuz shale oil and shale gas with NGL's has been a smashing success, and there is a glut of oil at Cushing. What is USA crude oil production today? What was it 5 years ago? Ten? |
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Post by 48 on Aug 25, 2011 12:38:43 GMT -5
r3020: WTI which is better oil than Brent trades at a discount cuz shale oil and shale gas with NGL's has been a smashing success, and there is a glut of oil at Cushing. What is USA crude oil production today? What was it 5 years ago? Ten? looter: I knew this would jack your ass up. lol. JHF. |
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Post by 3020 on Aug 25, 2011 18:42:03 GMT -5
How much of it is less demand for crude because of ethanol?
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Post by looter on Aug 25, 2011 21:59:20 GMT -5
This site has spot crude oil prices from around the world; www.upstreamonline.com/marketdata/markets_crude.htmAs you can see, all of the USA coastal refineries are paying Brent Price for oil. There's maybe a single dollar differance between Louisiana Sweet and Brent. Check out the price of Alaskan oil... |
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Post by 3020 on Aug 26, 2011 6:37:36 GMT -5
Why are they not buying futures and then taking delivery?
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Post by looter on Aug 26, 2011 7:01:13 GMT -5
Why are they not buying futures and then taking delivery? The delivery point for the NYMEX is Cushing, OK. Oil there is stranded from world markets, hence the poor basis. People can and do take delivery on NYMEX oil, but what you've got is a fat trucking bill to get it where its wanted. The new pipeline will eventually change the spread. A wonderful way to fight inflation would be to use Dickinson, ND oil price as the figure the financial news quotes. It's only $50/barrel there.  |
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Post by looter on Aug 26, 2011 7:14:39 GMT -5
How much of it is less demand for crude because of ethanol? The price spread between Brent and Nymex WTI = trucking cost. Thats what it costs to get oil from Cushing, OK to Houston, TX??? If its cheaper to truck it, then your idea of taking delivery is a winner! Ethanol does not impact the WTI price because the tiny bit of refining capacity at Cushing is running full bore. Why not. Afterall they are buying cheap stranded oil and selling dear gasoline. For the record, current USA ethanol production is equal in volume to TX oil production. Ethanol production = double Alaska, and three times ND oil production. |
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Post by 3020 on Aug 26, 2011 8:38:42 GMT -5
Was all of this not true back when light sweet always trade at +$2 to Brent?
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Post by 48 on Aug 26, 2011 10:06:51 GMT -5
Was all of this not true back when light sweet always trade at +$2 to Brent? r3020: I will be interested in looter's answer to your question. The pipeline to bring Canadian tar sand oil to Cushing is being built. The deal to build a pipeline from Cushing to Houston fell apart. Sooooo....if you think Cushing has a glut now...you ain't seen nuttin' yet. lol. |
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Post by looter on Aug 26, 2011 12:39:06 GMT -5
Was all of this not true back when light sweet always trade at +$2 to Brent? Pre-tar sand production, Cushing, OK was a net-importer of oil. Now it is a net-exporter. |
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