Brent-WTI spread is now down to $16. Supplies finally falling at Cushing.
The European benchmark grade settled at a $16 premium to WTI, the sixth consecutive decline and the narrowest spread since Jan. 22.
WTI’s discount to Brent oil widened to as much as $23.44 on Feb. 8 on concern that limits on the Seaway pipeline trimming flows to the Houston area would bolster a glut at Cushing, Oklahoma, the delivery point for the New York futures contract.
Crude stockpiles at Cushing fell 1.53 million barrels to 49.3 million last week, the EIA report showed. It was the biggest one-week decline in supply since May 2011. Supplies at the hub rose to a record 51.9 million in the week ended Jan 11,