WTI / Brent spread gone in 12 months

[dan_s]

This will wipe out the spread between WTI and Brent within 12-months.
-----------------------------------------------------------------------------------
Oil could be flowing through TransCanada’s Gulf Coast Pipeline by the end of the year, clearing up the logjam in Cushing, Okla., and sending thousands of barrels per day to refineries near Nederland.

The 485-mile pipeline is more than 85 percent complete, said David Dodson, a spokesman for Calgary, Canada-based TransCanada.

"Almost all of the pipeline has been built. What we have left are some tie-ins where we go under a road or go under a waterway," Dodson said.

Additional pumping stations and ground meters also need to be built.

The 36-inch diameter pipeline passes through 17 Texas counties and will have a capacity of 700,000 barrels per day, Dodson said.

[dan_s]

July 1: August Crude Oil prices registered a positive outside day reversal during Monday's session and a new eight day high in the process. Early support for crude oil came from a lift in outside market sentiment, higher equity markets and geopolitical tensions in Egypt. August Crude Oil prices saw another leg higher in response to this morning's US manufacturing data that came in slightly stronger than expected. This ultimately led to a drive in the contract above $98.25. Relative strength in WTI helped drive the premium on Brent Crude Oil to a new low for the move and below the $5.00 level.