Good question .Two short answers and three with mine to say it depends on the spread basically but perhaps someone could update the board.Another question that i think could be interesting now is how keystone project approval or rejection by Obama would affect refiners Specially CVI. Lets see. Mmmm i would say more oil to refiners South Coast would mean Cushing Stock increase ,WPI price decrease ,Spread (probably)increase ,CVI price (probably) increase.. Am i correct ?!?
The whole idea behind Keystone and the Seward reversal by Embridge is to get landlocked crude from Alberta and Cushing to the Gulf where it can fetch a price equal to Brent. The refiners which have profited on the WTI/Brent price discount will find their profit advantage evaporate while producers will see their profits rise. Gas prices will also rise as a result. How much is anyone's guess.
spread is what counts, essentially its good in the short term as it usually will take some time to close the spread, but ultimately whoever wants to supply it the cheapest in the end decides how much money they all make. the major factor you want to concern yourself with is demand in the long term, and supply in the short.
good question, been trying to figure it out myself. I suppose it depends on the spread. I know, Lisa usually
has good info and is very tuned into the oil ins and outs. So, if oil is @$80 (possible?) would it put a crunch on the refiners who are located close to Cushing Ok.
Now , how do we contact L I S A?