Archives for: February 2011, 25

Some things are just hard to ignore and some things are equally hard to explain

February 25th, 2011

We just can’t ignore what is happening in North Africa as it is having a profound effect on the price of Brent crude. Just to refresh everyone’s memory, Brent crude is looked on as the European benchmark crude versus the NYMEX based West Texas Intermediate (WTI) is North America’s benchmark.

Normally WTI is priced out at about $1.70/bbl higher than Brent supposedly because of the higher quality based on lower viscosity and lower sulphur levels. As it stands today Brent is now trading at a premium to WTI of $16/bbl, not a discount of $1.70/bbl to WTI.

So what is the real cost of crude?

By: Roger McKnight, Senior Petroleum Analyst

For more information on subscription rates for the full version of the En-Pro Weekly Energy Report, please send us your email to: info@en-pro.com.

Also this week, Roger McKnight talks with Seamus O’Regan of CTV’s Canada AM on how the Middle East crisis has driven up the price of oil in North America. http://www.en-pro.com/news.php?id=212&lang=en

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