Oil Prices

[dan_s]

From a Morgan Stanley energy sector analyst: "E&Ps are showing negative convexity to WTI (oil up, stocks down). In our view, the divergence is driven by an increasingly sour sentiment on US diffs and Brent pricing. We expect WTI to continue its Santa rally as US/global refiners remain in 4-5 weeks of peak runs and Keystone fills. We see upside (for WTI)."

[bearcatbob]

From a Morgan Stanley energy sector analyst: "E&Ps are showing negative convexity to WTI (oil up, stocks down). In our view, the divergence is driven by an increasingly sour sentiment on US diffs and Brent pricing. We expect WTI to continue its Santa rally as US/global refiners remain in 4-5 weeks of peak runs and Keystone fills. We see upside (for WTI)."

"...as Keystone fills."

That would be an interesting calculation - if it was earlier in the day.

Bob

[bearcatbob]

From a Morgan Stanley energy sector analyst: "E&Ps are showing negative convexity to WTI (oil up, stocks down). In our view, the divergence is driven by an increasingly sour sentiment on US diffs and Brent pricing. We expect WTI to continue its Santa rally as US/global refiners remain in 4-5 weeks of peak runs and Keystone fills. We see upside (for WTI)."

"...as Keystone fills."

That would be an interesting calculation - if it was earlier in the day.

Bob

www.stockhouse.com/news/natural-resourc ... -keystone-(sou

Keystone (south) pipeline
Canadian Press, The Canadian Press
0 Comments| 19 hours ago
CALGARY _ Oil has begun to flow on the southern leg of TransCanada Corp. (TSX: T.TRP, Stock Forum) Keystone XL pipeline.

Spokesman Shawn Howard says the company began filling the US$2.3-billion line with oil Saturday morning in Cushing, Okla.
That crude will eventually make its way to Houston-area refineries.

Howard says over the coming weeks, TransCanada will inject about three million barrels of oil into the system.

TransCanada is still awaiting approval from the Obama administration to construct the US$5.4-billion northern portion of Keystone XL more than five years after it applied for a permit.

The company was able to move ahead with the Gulf Coast portion first because it doesn't cross the Canada-U.S. border.

Read more at http://www.stockhouse.com/news/natural- ... -keystone-(sou#1kptPihPyemCT7AE.99