Cushing Glut To Support WTI-Brent Spread

The quicker-than-expected expansion of the Seaway pipeline is unlikely to have a profound impact on stocks at Cushing, as growing volumes of North American oil flooding into the storage hub are easily set to outstrip exit capacity. As a result, we expect the WTI-Brent differential to hold at around US$15/bbl until further changes are made to the facility's infrastructure.

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