Via Bloomberg
I came across this article on Bloomberg yesterday highlighting that the US oil's rise against two other key benchmarks looks more and more vulnerable to a reversal. According to Bloomberg the US marker's relative strength has been driven in part by expectations of new pipelines stateside that will allow more American oil to flow to global markets. This will ease a domestic surplus of oil. However, the steep gains now mean that US crude now looks less attractive to foreign buyers. Take a look at the chart below showing US Crude's discount to Brent and Dubai being around the smallest levels in more than a year,
This is seen as an explanation for why US weekly crude shipments fell from June's record high . US oil is still seen as a decent longer term cheaper alternative for Asia buyers, but the narrow gaps here are offering less incentive for traders and leave US crude vulnerable to a reversal.
