Arbs East creaking open, WTI Afras price out of NWE
Commentary summary:
– WTI (Afras) pricing out of Europe amid tight US stocks and ample supply in NWE.
– North Sea and Black Sea corrected substantially w-o-w. Some arbs to Asia look better as a result of this and the weak EFS.
– Sverdrup and Americas medium and heavy crudes show signs of strengthening.
WTI/Brent did indeed narrow – and rather substantially – last week with US stocks tight, particularly at Cushing.
Cushing stocks are now close enough to commercial minimums to become a pricing-centre issue for Nymex spreads and US light crude could do with a few weeks of pricing out the global market marginally. US imports also need to rise
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