American and Foreign Crude Oil $19 Apart -- So Much for Efficient Global Markets
All that drilling for oil and gas on U.S. soil has brought forth a gusher or sorts and overwhelmed transport systems in the middle of the country, as YCharts reported last week and the Wall Street Journal highlighted today. That has led to a historic gap between WTI Crude and Brent Crude, with WTI, the home-pumped stuff, cheaper by about $19 a barrel, as one sees in the Brent WTI Spread chart above. That favors refiners in the middle of the country against coastal refiners that source their oil from aborad.
Here’s the two crude prices together:
The road to energy independence is long and involves many fits and starts. But too much oil – if only in one region and temporarily – is a surprise. What next?