The sector is so strong at the moment that its biggest fear is not how OPEC and Russia manage supply policy, but whether there will be enough domestic pipeline and export capacity to get all that oil to market. Infrastructure constraints are the reason that American oil trades at a $9 a barrel discount on the West Texas Intermediate (WTI) benchmark compared to the international benchmark. The fact that American oil is being sold at a discount has prompted a surge of interest from large importing economies like China and India.
Saudi, Russia Move To Curb Oil Price Surge, For Now
The sector is so strong at the moment that its biggest fear is not how OPEC and Russia manage supply policy, but whether there will be enough domestic pipeline and export capacity to get all that oil to market. Infrastructure constraints are the reason that American oil trades at a $9 a barrel discount on the…
