Energy Prospectus

September Crude Oil prices trended higher throughout the US trading session after registering a lower low during the initial morning hours. The market garnered support from a bounce in outside markets and well-received comments from Fed Chairman Bernanke. This morning's EIA inventory report showed a much larger than expected draw down in US supply last week of 6.902 million barrels. Part of that decline came from an elevated level of refinery capacity, which was up 0.4% on the week to 92.8%. Crude Oil prices spiked to their high of the morning in response to the report. However, larger than expected builds in product inventories appeared to keep upside action contained into the early afternoon hours. Some traders noted a round of index fund buying late in the session as a force helping to lift prices to their high of the day.

WTI is now within $3/bbl of Brent. Glut of oil at Cushing, OK is all but gone. Cushing is where NYMEX oil futures for WTI are settled.
> New pipelines from Cushing and the Permian Basin taking oil to the Gulf Coast
> Midwest refineries drawing down Cushing inventory
> Rail taking Bakken oil directly to eastern refineries

WTI discount to Brent may widen this winter, but unlikely to go above $10/bbl again.

This is very good news for all of our Bakken companies.

CLR should move over $120/share if WTI stays over $100/bbl.

less than a buck difference today! wti will reign again me thinks.