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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (92291)	7/7/2012 7:00:58 PM
From: elmatador	Respond to of 218167

Prior to September 2010, there existed a typical price difference per barrel of between +/-3 USD/bbl compared to WTI and OPEC Basket, however since the autumn of 2010 there has been a significant divergence in price compared to WTI, reaching over $11 a barrel by the end of February 2011 (WTI: 104 USD/bbl, LCO: 116 USD/bbl). Many reasons have been given for this widening divergence ranging from a speculative change away from WTI trading (although not supported by trading volumes), Dollar currency movements, regional demand variations, and even politics. The depletion of the North Sea oil fields is one explanation for the divergence in forward prices. In February 2011 the divergence reached $16 during a supply glut, record stockpiles, at Cushing, Oklahoma and is currently (August 2011) above $23. Historically the different price spreads are based on physical variations in supply and demand (short term). en.wikipedia.org

To: Haim R. Branisteanu who wrote (92291)	7/7/2012 9:41:48 PM
From: bart13	Read Replies (1) \| Respond to of 218167

Bart what is the source basing the cost at $85 per barrel - is this a price equivalent to what? Brent or WTI? It's partly my estimate and based on EIA and BP data etc., plus what I thought is a well researched article on it a month or so ago on SeekingAlpha that noted $92 as the marginal cost of production. Price is based on Argus sour, which is roughly an average of WTIC and Brent. There's also various chart examples from others like these. An oldie based in 2008 dollars.