Report summaryExtraordinarily high US crude runs in April helped to tighten the Brent-WTI differential and to draw down US crude oil stocks. Crude runs this high are normally only seen in the peak of summer. Sustained crude runs at these levels would help to rebalance US crude markets and accelerate the summer drawdown of US crude stocks, but are these high crude runs sustainable.
The Dakota Access pipeline, set to begin shipments to Patoka and Nederland mid-May, will put a damper on already waning crude-by-rail shipments. Additionally, increased light crude supply to Nederland could leave the region oversupplied until the Bayou Bridge pipeline is completed in late-2017.
Barring supply disruptions from Venezuela or Libya, and assuming no military strike on North Korea, our Brent price forecast remains broadly unchanged.
This report includes 2 file(s)
- North America Crude Markets short-term outlook May 2017.pdf PDF - 1.08 MB
- North America Crude Markets short-term outlook May 2017.xlsx XLSX - 362.66 KB