Goldman Sees WTI-Brent Oil Spread Narrowing to $7 a Barrel
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The discount of West Texas Intermediate crude, the U.S. benchmark, to North Sea Brent will narrow to $7 a barrel from about $12 currently as U.S. refineries resume operations, Goldman Sachs Group Inc. said.
Brent futures surged to a two-year high of $108.70 a barrel yesterday as intensifying violence in Libya, holder of Africa’s largest crude reserves, heightened concern that supplies may be disrupted. It would take half of OPEC’s spare production capacity to replace Libya’s output, Goldman said in a research note today.