Brent premium to WTI

[dan_s]

I am expecting WTI to move closer to Brent pricing in 2018 because U.S. exports of light oil will increase.

Bloomberg: U.S. oil exports could rise as Gulf Coast ports beef up.
The Louisiana Offshore Oil Port (LOOP) will soon be able to handle very large crude carriers (VLCCs), which could open up the U.S. to higher levels of crude exports. “Expanding U.S. ports to accommodate direct loading of VLCCs will logistically help to streamline and expedite exports," said Michael Tran, a commodities strategist with RBC Capital Markets LLC, told Bloomberg. Up until now, VLCCs have had to use smaller ships to ferry oil from the shore, an operation that can add about $0.50 per barrel in costs.