Mar
13

Oil is OK

West Texas Intermediate crude sells for $106/barrel while North Sea Brent sells for $125. Normally, they are similarly priced. The current gap exists because of a lack of pipeline capacity out of Cushing, OK. (where physical delivery of oil occurs). But, a new pipeline (part of the Keystone XL project) is now being built which will eventually transport WTI from Cushing to the Gulf Coast and thus raise its price.

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