U.S. Midwest Crude Bottlenecks to Ease, JPMorgan Says
This article is for subscribers only.
Oil bottlenecks at Cushing, Oklahoma, the delivery point for New York futures, will ease, leading JPMorgan Chase & Co. to recommend buying June WTI futures and selling Brent contracts for the same month.
Lower prices for WTI in relation to other grades are making it profitable to move supplies by rail from the supply hub and will trigger “alternative solutions” to the movement of crude, JPMorgan analysts led by New York-based Lawrence Eagles said in a report today. Canadian oil output will drop in April, May and June, as companies perform maintenance, according to the report.