WTI-Brent Spread Widens on Smaller Drop at Cushing.
West Texas Intermediate crude’s discount to Brent widened as supplies at Cushing, Oklahoma, dropped by the least in nine weeks.
The Brent-WTI spread rose from the lowest level since April after the Energy Department said supplies at Cushing, the delivery point for WTI futures, dropped 198,000 barrels to 21.2 million last week. Falling inventories at the hub have boosted U.S. prices and narrowed the gap. Brent gained today on concern that Middle East tension will disrupt supplies.
People are not expecting any major changes in Cushing in the coming weeks and you are seeing a little bounceback in the spread.
WTI for July delivery climbed 4 cents to $104.39 a barrel. Volume was 9 percent below the 100-day average for the time of day.
Brent for July settlement gained 33 cents, or 0.3 percent, to $109.85 a barrel. The volume of all futures was 16 percent above the 100-day average.
Cushing supplies reached the lowest level in more than five years last week estimated a minimum operating level of 20 million barrels at the biggest U.S. oil hub.
Cushing inventories are down 49 percent since the southern leg of the Keystone XL pipeline began moving oil to Gulf refineries from the hub in January.
The WTI-Brent spread has averaged about $6.60 in the second quarter, according to contracts traded on the ICE, down from $9.41 in the January-March period.
The EIA said yesterday in a monthly report that “seasonal demand for refined products and strong refinery runs” will help keep the WTI discount to Brent near $7 for a few months and the gap will widen to $12 in December. EIA expects the discount to average $9 in 2014 and $11 in 2015.
I hope XCO doesn't operate under this methodology?
Chesapeake Energy charged with alleged fraud, racketeering.
Michigan's attorney general filed felony racketeering and fraud claims against Chesapeake Energy on Thursday, alleging the company canceled hundreds of private land leases under false pretenses following a short-lived oil and gas boom in the state in 2010.
The charges allege Chesapeake, through its leasing agents, victimized private landowners in northern Michigan by falsely claiming mortgages on their properties were a legitimate basis for the lease cancellations. Landowners were previously told the mortgages were not a problem, the state alleged.
Schuette alleged that, as a result of leasing the oil and gas rights on Michigan landowners' properties then cancelling the deals, "Chesapeake therefore obtained uncompensated land options from these landowners by false pretenses, and prevented competitors from leasing the land."
Chesapeake allegedly signed leases with as many as 800 Michigan landowners, but honored less than 30 leases, according to the state's felony complaint.
In 2011, Reuters reported on the company's land leasing and cancellation tactics in Michigan. Hundreds of landowners were notified that their leases had been canceled by an obscure company called Northern Michigan Exploration, a shell company formed by Chesapeake.
General Motors’ chief executive, Mary T. Barra, said Tuesday that the number of deaths and accidents linked to defective ignition switches could increase when an independent compensation plan is completed.
Speaking to reporters before the automaker’s annual meeting, Ms. Barra said that Kenneth Feinberg, a lawyer who specializes in victim compensation, would “independently determine” how many people died or were seriously injured in millions of small cars with faulty ignition switches.
She said G.M.'s tally of 13 deaths and 54 accidents was based on “the information we have right now,” but said that figure could grow in the weeks ahead.
“We are relying on the expertise of Kenneth Feinberg, who is experienced in designing and administering complex compensation programs,” Ms. Barra said.
What a fool.
T. Boone Pickens, the octegenarian founder of BP Capital, responded to the leaked pictures and video of President Barack Obama's workout with his own exhibition—and a challenge.
"I challenge Pres Obama to a 1 hr workout. My cardio is better."
Idiot. Typical yahoo board. CHS was a fantastic company years back. Now just another women's retailer. Too bad you haven't figured this out yet pal.
So true. I've owned LNG for about i year now. Killing all my other losers thankfully. LNG is the best stock in America IMHO. And as you point out it's on a roll and now the Government just bolstered it by a multiple of 10. Jubak just upped it again too.
As for XCO and exporting? No way. Can they survive the high drilling costs and service their debt? I don't really think so.
Correct 100%. Ross will make a deal somewhere and screw we shareholders into the ground. From $6.60 to $5. #$%$. This is NOT investing here it's full bore gambling and the hedge funds are winning. Shareholders getting murdered.
Face the music. How much pain can the shareholders here endure? And this is all in a bull market. What happens when the FED finally grows some stones and starts raising rates? $3 XCO price is w/o a doubt in the offering. Look at the whole picture here. It's pathetic. Not even a CEO. #$%$....
What drug are you people on? Better get off the chemicals folks NG is DOA in America. A s-term Renaissance here which will over the months ahead lose all of its juice. Fracking will come under much scrutiny and opposition and NG supplies will dry up along with such entities as XCO. Ross made the biggest mistake of his life.
What do you expect? Abundant supply dwarfing demand. And XCO is showing its true colors is it not?
I never bought into this buyout stuff. I may be wrong, sure won't be the 1st time, but I just think these fat cats got caught in this stock when NG rolled over. I do believe Ross and Company all thought about an export business that they'll probably will never see. And I truly believe they want OUT not in XCO.