Brent crude's price premium to the West Texas Intermediate benchmark, already trading near the lowest levels since early 2011, may shrink even further as more oil from the central U.S. reaches the Gulf Coast, according to Dominick Chirichella of the Energy Management Institute.
The net flow of crude oil out of the Cushing, Okla., storage hub "has changed the market sentiment," Chirichella wrote in a special report. As a result, the spread "has entered a path toward normalcy," referring to periods when WTI traded higher than Brent.
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