Energy OverView February 6, 2013

The real price action in the oil market right now is being driven by the dynamics of inland US oil production, and the infrastructure vagaries. The Seaway pipeline reversal was supposed to liberate stranded mid-continent barrels and reduce the price spread between Brent crude and WTI. We have had some fun deriding the actual outcome as a pipeline to nowhere and attributing the narrowing of the spread to irrational pipeline exuberance.

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