Why has Brent suddenly become so much more expensive than WTI?
Brent Crude is sourced from the North Sea. The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum.
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).
Peaking in 1999, production of North Sea oil was nearly 950 000 m³ (6 million barrels) per day. Natural gas production was nearly 280×109 m³ (10 trillion cubic feet) in 2001 and continues to increase, although British gas production is in sharp decline.[19]
UK oil production has seen two peaks, in the mid 1980s and late 1990s, with a decline to around 300×103 m³ (1.9 million barrels) per day in the early 1990s.[20] Monthly oil production peaked at 13.5×106 m³ (84.9 million barrels) in January 1985[20] although the highest annual production was seen in 1999, with offshore oil production in that year of 407×106 m³ (2559 million barrels)[21] and had declined to 231×106 m³ (1452 million barrels) in 2007.[21] This was the largest decrease of any other oil exporting nation in the world, and has led to Britain becoming a net importer of crude for the first time in decades, as recognized by the energy policy of the United Kingdom.[22] The production is expected to fall to one-third of its peak by 2020.
Anomaly in 2011
In February 2011, WTI was trading around $85/barrel while Brent was at $103/barrel. The reason that most cite for this anomaly is that Cushing has reached capacity, depressing the oil market in North America which is centered on the WTI price. However, Brent is moving up in reaction to civil unrest in Egypt and across the Middle East. Since stockpiles at Cushing cannot be easily transported to the Gulf Coast for export, WTI crude is unable to be arbitraged in bringing the two back into parity.
Prosecution of cannabis ownership in German states:
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It shows what amount is defined as a "Small Amount".
We will continue with this sunk cost fallacy forever! (Also, Saxony is actually quite decent if the people there keep their mouths shut.)Time to kick East Germany out of FRG![]()
1/4 gram if you have good stuff and 1/2 gram if you have mediocre stuff.What's the minimum amount to get high anyway?
we will never match the USA.
Haha, welcome to the developed world.Instead of worrying about overpopulation, we're now concerned with the effects of growing old while poor, with a vast and deficitary public pension system. Personally I foresee an economic collapse of biblical proportions.
Haha, welcome to the developed world.