Brent and WTI Oil Contract Gap at Closet Level in Four Months

by George Belekos, KPI Bridge Oil
Thursday February 27, 2014

Brent and WTI oil contract gap narrowed today to its closet level in four months. 

Many expect the spread to continue to narrow as TransCanada Corp's southern Gulf pipeline ramps up capacity and transports more oil from the inland storage hub to Gulf Coast refineries.

Brent was pressured by civil unrest in Ukraine and expectations that crude oil demand would decrease as refineries begin seasonal turnaround maintenance.

Bunker markets were soft today, however, low sulfur availability seems to be very scares in various ports in the Americas due to a tremendous amount of the supply being diverted to power generation.

WTI closed down $0.19/bbl at $101.83 while Brent fell $0.55/bbl to $108.96/bbl.