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To: SeekAndFind

Libyan oil goes to Europe anyway. The main benefit for the US here is not having another expensive, interminable overseas conflict of dubious constitutionality or benefit.


40 posted on 08/21/2011 6:32:38 PM PDT by icanhasbailout (I have no argument and can't do logic so I think I will call you a noob instead)
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To: icanhasbailout
Absolutely agreed.

However, being a trader, I look at things rather differently than non-traders.

Libyan crude does indeed flow to Europe. In the absence of Libyan crude, Euro refineries tend to run Brent, and some Urals, although -- Urals being generally sour -- this is less desirable.

No matter who ends up running Libya, that group/faction/whatever is going to have to produce and export in order to pay the bills.

And, like it or not, the WTI-Brent crude spread is going to come in (narrow from it's current $22-23 level) big time. In case you're curious, this spread, WTI-Brent, has historically run from +/- $2-3 dollars/bbl. It's now over $20/bbl.

You do the math. Not all that much difference in a barrel of Brent and a barrel of WTI. Certainly not $20 worth, eh?

Good trading to you!

85 posted on 08/21/2011 9:59:15 PM PDT by SAJ (What is the next tagline some overweening mod will censor?)
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