Widening Brent-WTI price spread unlikely to change East Coast crude oil supply

U.S. Energy Information Administration --------- In September and October 2017, the difference between domestic and foreign crude oil prices has risen to the highest level since 2015. In the past, price differences between West Texas Intermediate (WTI) and Brent crude oil led to changes in crude oil supply for petroleum refineries in the U.S. East Coast region. However, recent price changes are not expected to affect East Coast crude oil supply unless the gap continues and widens.Between 2011 and 2013, when domestic crude oil prices (WTI) ranged from $3 per barrel (b) to $27/b lower than foreign crude oil (Brent) on a monthly average basis, refineries on the U.S. East Coast changed how they were supplied with crude oil. The recent price spread, which has averaged $6/b in September and October, has not grown large enough—and is not expected to last long enough—for changes similar to those seen between 2011 and 2013. To learn more click on the picture below to read the article.