Industrialized Cyclist Notepad


WTI catches back up to Brent
July 21, 2013, 00:23
Filed under: Uncategorized | Tags: , , , , , , ,

West Texas Intermediate crude became more expensive than Brent for the first time in almost three years as pipeline and rail shipments helped clear a bottleneck that reduced the price of the U.S. benchmark.

WTI hadn’t been higher than Brent since Aug. 17, 2010. The move was in intraday trading. WTI averaged $17.47 less than Brent in 2012 and traded as much as $23.44 lower than its European counterpart Feb. 8.

Improved pipeline networks and the use of rail links are helping to ease the North American oil glut created by rising production of crude from shale formations. WTI has jumped 18 percent this year, while Brent has decreased 2.5 percent as North Sea supplies stabilized after maintenance.

via WTI Crude Exceeds Brent for First Time in Almost Three Years – Bloomberg.



The Bottleneck

pipeexpandeia

Via EIA:

This Week In Petroleum Summary Printer-Friendly Version.



The Spread
February 13, 2013, 18:10
Filed under: Uncategorized | Tags: , , , , , , ,

thespread
click to enlarge

Blue is Brent, black is WTI, green is the spread between them.

A relatively recent phenomenon explained by James Hamilton:

West Texas Intermediate is a particular grade of crude oil whose price is usually quoted in terms of delivery in Cushing, Oklahoma. Brent is a very similar crude from Europe’s North Sea. As similar products, you’d expect them to sell for close to the same price, and up until 2010 they usually did. But an increase in production in Canada and the central U.S. combined with a decrease in U.S. consumption has led to a surplus of oil in the central U.S. This overwhelmed existing infrastructure for cheap transportation of crude from Cushing to the coast, causing a big spread to develop between the prices of WTI and Brent.

via Econbrowser: Prices of gasoline and crude oil.



TransCanada will build Gulf Coast leg of Keystone XL
February 27, 2012, 18:26
Filed under: Uncategorized | Tags: , , , , , , , ,

Doesn’t need fed approval for that.

TransCanada said Monday that a 700,000 barrel-per-day Gulf Coast leg originally part of the Alberta-to-Texas Keystone XL proposal is now a separate $2.3-billion US project that doesn’t require a cross-border presidential permit. Obama denied Keystone XL a construction permit in January, following a delay of the project last November caused by an extension of U.S. environmental review.

The link between an oversupplied Oklahoma oil storage hub and the world’s largest refining market in Texas will help relieve a glut in crude supply in the U.S. Midwest upon startup in mid to late 2013, the company said.

via Update: TransCanada has “significant” commercial support for Gulf Coast pipeline: executive — Calgary Herald.



Refinery purchasing costs by region

The cost of the raw material varies greatly around the country. This is the featured chart on EIA’s This Week in Petroleum.




Follow

Get every new post delivered to your Inbox.

Join 83 other followers