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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: raybiese who wrote (157090)	9/17/2011 7:32:41 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206135

ray, I would think that verification that Libyan oil is causing the Brent/WTI price spread would come if the spread narrows in conjunction with the Libyan oil starting to come back online. I realize its going to be quite a long time before all of that oil comes back but I believe some of it is scheduled to come back fairly soon. I would think the impact would be linear, so with something like 1.8 mbo of Libyan oil production being offline, I would expect Brent prices to decline by about a buck for every 100K bbls. of Libyan oil that comes back online, without WTI being affected, thus narrowing the Brent/WTI spread by that amount.