WTI crude futures settled in minor positive territory outperformed by Brent which gained almost 1%. The spread between WTI and Brent has widened with Brent rising USD 1.40 to four month highs on heavy spread trading and optimism regarding the global economy while WTI struggled in comparison on expectations that inventories at Cushing, Oklahoma will continue to build. The spread had narrowed earlier this month with the start up of the expanded Cushing to Texas Seaway pipeline which was expected to reduce the inventory surplus in North America, but the realisation that the pipeline may not run at full capacity until the second half of 2013 has once again raised concerns over a supply glut. Also supporting price action today was generally positive US data and geopolitical concerns in Turkey.
01 Feb 2013 - 19:32 - Energy Geopolitical - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: