Wednesday, May 9, 2012

Alaska's Oil Price Premium Can't Last; "Huge Arbitrage" will drive investment to displace ANS Crude

Alaskanomics.com
by

A blog posting by David Hackett examines the reasons behind the recent high prices of North Sea Brent Crude oil relative to West Texas Intermediate Crude (WTI), noting that these two crudes historically traded at close to the same price. The huge increase in oil production from North Dakota has disrupted traditional oil transportation and supply patterns - there is no efficient way to transport oil south of Oklahoma to the refineries on the Gulf coast. North Sea Brent is trading at about $20 more per barrel.

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