WTI and Brent crude futures settled in positive territory benefitting from increased risk appetite across the asset classes after better than expected US macro data in the of Weekly Jobs, Manufacturing PMI and Leading Indicators as well as positive sentiment from Europe after strong German Manufacturing/Services PMI. WTI had sold off heavily in the previous session after the surprise news that Seaway had cut its crude flow by more than half to 175,000 BPD, stoking fears that the US would be faced with a glut at Cushing, OK. However markets have since been reassured by increased capacity in the Seaway pipeline, though it is not clear when the pipeline will be completely back up and running. This positive news regarding the Seaway pipeline has narrowed the spread in WTI-Brent to below 17.50.
Print 19:39, 24 Jan 2013 - Commodities - Source: RANsquawk
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