The premium of Brent over WTI dropped from US$23/bbl in February 2013 to trade at parity in late July. Stronger-than-usual demand from US refiners this summer and new pipeline capacity has helped reduce bottlenecks at Cushing, boosting the price of WTI compared to Brent crude…
ETF Securities Research
Edith Southammakosane, Director – Research
We expect the strength in US oil demand to continue over the next few months, pushing the price of WTI above US$110/bbl, and in turn lifting the price of both gasoline and heating oil.
The US Energy Information Administration (EIA) is forecasting colder winter temperatures for 2013 compared to 2012, which, if correct, should lend support to oil and natural gas prices. We believe the price of natural gas should recover to US$4.5/MMBtu in the coming months.