US crude rises on US pipeline reversal plan
Posted by WARREN MOSLER on 17th April 2012
This could be it- watch for WTI crude to converge to Brent.
My guess is that WTI rises to meet Brent at around 120+
The pipeline was scheduled to open June 1.
This moves it up to May 15th or so.
NYMEX-US crude rises on US pipeline reversal plan
By Randy Fabi
April 1 (Reuters) — U.S. crude oil prices rose above $103 a barrel on Tuesday in response to news that a plan to drain off a glut of oil from the Midwest could be implemented two weeks ahead of schedule.
FUNDAMENTALS
* NYMEX crude for May edged up 28 cents to $103.20 a barrel by 2306 GMT, adding to a 10 cent gain the previous session.
* Enterprise Product Partners and Enbridge plan to reverse the flow of the Seaway oil pipeline by mid-May pending regulatory approval, allowing the line to start draining the glut of crude from the U.S. Midwest two weeks ahead of schedule.
* Iran is ready to resolve all nuclear issues in the next round of talks with world powers if the West starts lifting sanctions, its foreign minister said on Monday.
* U.S. commercial crude stockpiles were forecast to have risen 1.6 million barrels last week after data showed the largest three-week build in more than three years due to higher imports, a preliminary Reuters poll showed on Monday. The American Petroleum Institute will release its report later on Tuesday.
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