Will WTI crude regain its status as the benchmark for crude prices?
About two months ago, the U.S. Department of Energy started using Brent crude as its benchmark for crude prices. It appears WTI could soon be the benchmark again, though.
Over the last several weeks, the spread between WTI crude and Brent has come in from Brent to being $23 over the WTI price to under $17 over on Friday.
It is no coincidence that this price movement has happened right at the time Seaway pipeline announced plans to expand capacity of the line that takes crude from Cushing, Oklahoma where WTI is delivered to the Gulf of Mexico. This pipeline is now carrying roughly 280,000 barrels a day and by the end of the month, the number could increase to 400,000 barrels a day.