The high inventory levels at the Cushing, OK, terminals are paying a dividend for consumers in the U.S. There seems to be growing demand overseas and the other crude bench mark, Brent, is trading $6 to $7 higher than the NYMEX bench mark, WTI. The premium for Brent is attributed to the oversupply at Cushing that cushions U.S. prices from a lot of the volatility in the market. Today, as an example, WTI dropped 46¢, to $90.88 while Brent rose 37¢, to $98.17. The $7.29 premium for Brent is the highest this month when the premium has been most noticeable.
Today, prices were affected by a bigger than forecast drop in housing starts, a boost in the flow of the Trans-Alaska Pipeline, and the growing product inventory even as crude inventories draw down. Even the dollar's fall in today's trading did not push crude up.
Today crude -46¢, $90.88; gasoline +0.16¢, $2.4816; distillate +1.13¢, $2.6564.
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