CL Redux
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http://www.marketwatch.com/story/oil-extends-losses-to-sixth-day-2012-05-18?dist=afterbell
The Seaway pipeline is expected to carry 150,000 barrels a day from Cushing this WEE
Oil futures continued on a downward path Friday, on a sixth consecutive day of declines as investors remained
- concerned about global growth and
- lessened demand for oil amid plentiful U.S. supplies.
Investors also parsed out news that a U.S. pipeline reversal, seen as instrumental in alleviating the glut in oil hub Cushing, Okla., is <b> to start this weekend.</b>
We have not had any good news in two weeks; everything continues to erodeâ with investors looking at the euro zone problems casting a pall over global demand for oil, and concerned about the oversupply in the U.S., said Tom Bentz, managing director at BNP Paribas in New York.
<b>âWe are very oversold, though, which tells me to look for a rallyâ any moment, depending largely on the news flow, he added. </b>
With Europe struggling, in the âother side of the Atlanticâ the expectations are âthat the Seaway pipeline reversal will help ease the surplus at Cushingâ and the news likely contributed to keeping the drop in US crude prices limited, analysts at JBC Energy said in a note to clients.
Enterprise Products Partners and Enbridge completed the technical aspects of the reversal, and the companies are expected to start shipping oil to the Gulf Coast from Cushing this weekend.
Inventories at Cushing, the delivery point for Nymex oil, are at a two-decade high.
<b>The Seaway pipeline is expected to carry 150,000 barrels a day from Cushing to the Gulf Coast initially.</b> It is likely to contribute to a narrowing of the spread between the New York-traded and Brent prices, the JBC analysts said.
The companies have said they will expand capacity to 400,000 barrels a day by early 2013. Once capacity reaches around 300,000 it will start to make a meaningful dent on the Cushing oversupply, BNPâs Bentz said.
The Seaway pipeline is expected to carry 150,000 barrels a day from Cushing this WEE
Oil futures continued on a downward path Friday, on a sixth consecutive day of declines as investors remained
- concerned about global growth and
- lessened demand for oil amid plentiful U.S. supplies.
Investors also parsed out news that a U.S. pipeline reversal, seen as instrumental in alleviating the glut in oil hub Cushing, Okla., is <b> to start this weekend.</b>
We have not had any good news in two weeks; everything continues to erodeâ with investors looking at the euro zone problems casting a pall over global demand for oil, and concerned about the oversupply in the U.S., said Tom Bentz, managing director at BNP Paribas in New York.
<b>âWe are very oversold, though, which tells me to look for a rallyâ any moment, depending largely on the news flow, he added. </b>
With Europe struggling, in the âother side of the Atlanticâ the expectations are âthat the Seaway pipeline reversal will help ease the surplus at Cushingâ and the news likely contributed to keeping the drop in US crude prices limited, analysts at JBC Energy said in a note to clients.
Enterprise Products Partners and Enbridge completed the technical aspects of the reversal, and the companies are expected to start shipping oil to the Gulf Coast from Cushing this weekend.
Inventories at Cushing, the delivery point for Nymex oil, are at a two-decade high.
<b>The Seaway pipeline is expected to carry 150,000 barrels a day from Cushing to the Gulf Coast initially.</b> It is likely to contribute to a narrowing of the spread between the New York-traded and Brent prices, the JBC analysts said.
The companies have said they will expand capacity to 400,000 barrels a day by early 2013. Once capacity reaches around 300,000 it will start to make a meaningful dent on the Cushing oversupply, BNPâs Bentz said.
GM
Oil Rises First Time in Seven Days; Goldman Sees Tighter Supply
http://www.bloomberg.com/news/2012-...n-seven-days-goldman-sees-tighter-supply.html
Oil Rises First Time in Seven Days; Goldman Sees Tighter Supply
http://www.bloomberg.com/news/2012-...n-seven-days-goldman-sees-tighter-supply.html