WTI’s return to relevance is nearly complete, or that is what some would have you believe. It really never lost its relevance; it was merely discounted to other price markers because of the glut of oil at the delivery point in Cushing, Oklahoma. The pipeline rationalizations and the surge in rail shipments have been well chronicled and the impact over the past several weeks has been stark, with the plunge in Cushing inventory levels. Overall, US crude oil inventories have plunged as well. The combination of a high level of domestic refining activity and low rate of imports has changed sentiment for now.
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