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. Additionally, non-OPEC production is expected to rise by 700,000 bbl/d in Q4; half from America.
Tag Archives: WTI
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.