CHICAGO, Oct. 28, 2013 /PRNewswire/— The current energy renaissance in North America is marked by significant improvements in the production and distribution of crude oil.
Major investments in U.S. infrastructure and the increased production of domestic crude oil are pushing the U.S. closer to energy self-sufficiency—imports of foreign oil have decreased, while exports of refined products have increased. The long-term investment by rail companies is just one of many signs that the predictions of sustained crude oil growth in North America are likely to come true. Within the next few months, the Seaway pipeline looping will double capacity from 400,000 BPD to 800,000 BPD, and the southern leg of the Keystone pipeline is scheduled for completion, adding an additional 600kbd. This will mean an extra one million barrels per day flowing out of Cushing, Oklahoma to the Gulf of Mexico. We continue to see a shrinking spread between West Texas Intermediate (WTI) and the North Sea Brent contract, and expect that with the continued growth in North American production, WTI will return to trading at a premium to Brent.
These and other factors are outlined in an infographic and Open Markets blog post looking at the U.S. oil boom. As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.
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