Transportation constraints and export costs widen the Brent-WTI price spread (11/8/2017)

In its November Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts the price difference between West Texas Intermediate (WTI) crude oil priced at Cushing, Oklahoma and Brent, the global crude oil price benchmark, to remain at $6 per barrel (b) through the first quarter of 2018 before narrowing to $4/b during the second half of 2018 (Figure 1). WTI averaged $2/b lower than Brent price through the first eight months of 2017 and averaged $6/b lower than the Brent price in September and October. ... More »