The Energy Report: U.S. oil prices hit their third peak of 2012 soon after your last interview with us, then bottomed around $85 per barrel ($85/bbl) in early November. Now they're back in the mid-$90s. What's causing the recent strength?
Elliott Gue: New pipeline capacity is alleviating some of the supply crude glut in places like Cushing, Oklahoma. As a result, West Texas Intermediate (WTI) has gained ground against Brent, which is now trading just under $114/bbl and has been in that same $107115/bbl range since August. Over the next year or so, a number of other pipelines will open up to the Gulf Coast, which will help narrow the spread between Brent and WTI.
TER: Will the increased oil supply at the Gulf refineries be good for gasoline prices? Continue reading "What the Narrowing WTI/Brent Price Gap Means for Investors"