Oh, and one more thing.
The Brent spread normalizing . . . normal is about -$0.50. It ‘s not usually above WTI (where usually is defined as more or less never until this year).
Well, the bad news about that is the spread was $10 . . . in January. Before Libya was even on the radar screen.
Right you are. So, only enter the trade to make 5-6-8 dollars, not the whole enchilada. The spread will not normalise to historical levels until such time as Cushing can be “unlandlocked” and crude can flow conveniently to the Gulf for export. The Keystone XL project is critical here (and, what else?, is being held up by the ecoturds and the Marxists in the State Dep’t).