Oily Business

By Econ70 | 09/12/2013

Crude oil prices are up 6% since Syria took center stage on 8/21/13. They had already risen 15% in the prior four months due to rising demand and a 2.7 million barrels/day (bbl/d) reduction in supply in August. But traditionally, demand falls by 2.4 million bbl/d in Sept/Oct, reducing world demand to 75.9 million bbl/d.…

Read More

Oil is OK

By Econ70 | 03/13/2012

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…

Read More