June is set for a strong finish as the heavy losses earlier in the month have been all-but wiped out in the past week. The OPEC & friends plan to bring another million barrels/day or so to the market doesn’t seem to be enough to overcome supply disruptions in Venezuela, Canada, Libya and Iran keeping the year-old bull market intact, and setting the stage for another push north of $80 for oil, which could mean another 10-20 cents of upside for refined products in July.
The WTI/Brent spread has been especially volatile during the past week, with prompt WTI futures up more than 15% while Brent is “only” up 9%. As the charts below show, the action has all been at the front of the curve, with the Syncrude outage coupled with record US exports making inventory in Cushing OK suddenly fashionable once again.
Today’s good read: Fracking in TX is turning 20.