The real reason for soaring US oil prices inspite of a glut of crude oil sitting in a vast array of Oklahoma tank farms.

Thursday, July 18, 2013

The real reason for soaring US oil prices inspite of a glut of crude oil sitting in a vast array of Oklahoma tank farms.

US Crude Oil Prices Surged 23% In The Past Three Months On Middle East Instability Plus New Access To US Oil Supplies Formerly 'Bottlenecked' In Oklahoma

David Kashi
on July 17 2013 3:23 PM
NYMex May 2012 2

Traders on the New York Mercantile Exchange.

West Texas Intermediate, or WTI, the benchmark U.S. crude, soared to $106.10 per barrel Wednesday, from about $86 in mid-April.
Part of the reason stems from unrest in Egypt as traders and market participants fear that civil strife in the biggest Arab country may bleed over to the Suez Canal, where 4 million barrels of oil pass every day, said Christopher Knittel, an energy economist at the MIT Sloan School of Management.
“Egypt made some players in the market very uneasy as to what might happen in the near future with supplies,” Knittel said.
The price for WTI, meanwhile, is influenced by its European counterpart, a crude known as Brent blend, which is the benchmark for two-thirds of the world’s traded crude and what Europe uses as its pricing standard. For that reason, the rise in price of Brent blend over worries about the Suez Canal have also lifted the price of WTI, Knittel said.

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