CL Redux
- Thread starter schizo
- Start date
Oil cracks $100 on pipeline reversal news
http://www.marketwatch.com/story/crude-oil-cracks-100-for-first-time-since-june-2011-11-16
More importantly, however, Enbridge also announced it was reversing the pipelineâs flow, immediately lighting up hopes the bottlenecks in Cushing would be eased. The Seaway pipeline would transport about 150,000 barrels of oil a day from Cushing to the Gulf, pending regulatory approval.
âCrude has exploded higherâ on the Seaway pipeline reversal news, said in a note to clients Matt Smith, an analyst with Summit Energy.
âThis will now aid in alleviating the supply glut, rather than previously exacerbating it,â he added.
Problems in Cushing have been at the heart of record premiums between New York-traded oil and Europeâs benchmark, Brent oil traded in London.
Brent crude futures fell 36 cents, or 0.4%, to $111.40 a barrel on ICE Futures in London.
The surprise announcement means that Canadian oil sands production would be delivered to the Gulf Coast market, competing more directly with Brent barrels, said Tim Evans, an oil analyst with Citi Futures Perspective, in a note to clients.
http://www.marketwatch.com/story/crude-oil-cracks-100-for-first-time-since-june-2011-11-16
More importantly, however, Enbridge also announced it was reversing the pipelineâs flow, immediately lighting up hopes the bottlenecks in Cushing would be eased. The Seaway pipeline would transport about 150,000 barrels of oil a day from Cushing to the Gulf, pending regulatory approval.
âCrude has exploded higherâ on the Seaway pipeline reversal news, said in a note to clients Matt Smith, an analyst with Summit Energy.
âThis will now aid in alleviating the supply glut, rather than previously exacerbating it,â he added.
Problems in Cushing have been at the heart of record premiums between New York-traded oil and Europeâs benchmark, Brent oil traded in London.
Brent crude futures fell 36 cents, or 0.4%, to $111.40 a barrel on ICE Futures in London.
The surprise announcement means that Canadian oil sands production would be delivered to the Gulf Coast market, competing more directly with Brent barrels, said Tim Evans, an oil analyst with Citi Futures Perspective, in a note to clients.
is it 80? i heard from somewhere few yrs ago anything above $60/barrel is profit for them. no longer the case?
The extraction and refining processes related to tar sands cost companies mining tar sands in Canada <b>approximately $27 per barrel</b>. However, despite the extraction costs of oil from tar sands, in today's current market, with the purchase price of oil at $80 per barrel, the production of petroleum from tar sands is still an extremely profitable affair for companies mining Canadian tar sands.
http://www.oil-price.net/en/articles/are-canadian-tar-sands-profitable.php
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Ammo, good luck/skill with your short, but in my view you're fighting the undertow of the spread's undoing
