OIL: WTI/Brent Spread Narrows Amid Falling Cushing Stocks

The WTI discount to Brent is the narrowest since Sept. 30 after EIA data yesterday showed Cushing stocks falling below the seasonal five year range lows.

• Cushing stocks are just above the low of 22.71mbbl seen in mid September and the lowest for the time of year since 2007.
• A decline of 1.3mbbls on the week was driven by lower US imports of Canadian crude, according to Bloomberg.
• The WTI-Brent is today trading at -$3.65/bbl having gradually narrowed from around -$5.2/bbl at the start of the year.
• Low inventories at Cushing also added support to the prompt WTI spread to the highest since Nov. 25 yesterday and holding steady around $0.44/bbl today.
  • Brent FEB 25 down 0.1% at 73.46$/bbl
  • WTI JAN 25 down 0.1% at 70.24$/bbl
  • WTI-Brent up 0.04$/bbl at -3.65$/bbl
  • WTI JAN 25-FEB 25 up 0.03$/bbl at 0.45$/bbl
  • WTI JUN 25-DEC 25 up 0.01$/bbl at 1.39$/bbl

Source: MNI / EIA