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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (96428)	7/9/2011 5:29:26 PM
From: Wharf Rat	Read Replies (2) \| Respond to of 149317

"We estimate that the cost of railing oil from Cushing to St James in Texas varies from $7/bbl to $10/bbl, but even there capacity will likely only amount to an estimated 100 thousand b/d, which is still a substantial increase from last year’s estimate of 45 thousand b/d. Trucking oil out of Cushing is an even more expensive endeavour, with the cost per barrel estimated to be another $4/bbl to $5/bbl above railing. With no other alternatives to move crude oil from Cushing to the Gulf Coast, WTI-Brent differentials in the front-end of the curve traded as wide as $16/bbl in recent months," BofAML analysis said. With light sweet barrels around Cushing starting to draw, WTI crude oil timespreads have started to compress at a phenomenal speed, even despite the record crude oil inventory levels at Cushing" Brent spread almost $22 yesterday. Barge is also an alternative when the river permits. I keep telling you pretty much everything this article sez, eg "pipeline system cannot bring all the surplus crude to the Gulf Coast." The higher the spread, the more incentive to pay shipping and tack on a profit for your troubles. "With the pipeline system saturated, shippers have moved on to other sources of transport including rail and truck to take advantage of the price differentials between landlocked WTI and Gulf Coast seaborne grades such as Light Louisiana Sweet and HLS (Chart 17)." God, have mercy Message 27442267 Message 27443169 Where do I think Cushing oil is going? Nowhere, at the moment.. it's stranded. That's why it's called a glut. If it could go somewhere easily, the spread would be a lot smaller, and the price of Brent and La. Lite would prolly drop. But it can't. Your article tells you why.