Big Swings in U.S. Oil Derivatives Show Supplies Tightening
- Prompt WTI crude timespread spikes to widest in two years
- Stockpiles should be expanding this time of year: Gary Ross
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Big swings in the price of oil derivatives signaled that U.S. crude supply is getting tighter, adding another dimension to the volatility that’s gripping energy markets.
The gap between the price of West Texas Intermediate barrels for delivery in November versus December -- known as the prompt timespread --- surged to the widest premium in more than two years. That’s an indication that stockpiles at the storage and distribution hub of Cushing, Oklahoma, are set to shrink.