Delay in government approval of TransCanada's (TRP) Keystone pipeline
will keep US and global oil markets from reconnecting through 2013, Barclays
says. Europe's Brent crude and US WTI traded within $1.00/barrel of each other
until this year, when a US supply glut sent Brent to a $28 premium.
Barclays
says Keystone pipeline to the
Gulf of Mexico
was
"paramount" in ending the dislocation, but firm now sees pipeline
operational "in 2014 at the earliest." That means "a widening of
the 2013 WTI-Brent spread could very well be in the offing."