The price gap between benchmark European Brent crude oil and Nymex
crude, which has fallen below $5/barrel to reach the smallest levels in 2
years, could for a short while get even narrower as new pipelines send
landlocked crude to the Gulf Coast, says Goldman Sachs.
But it warns a
still-narrower spread could be short-lived if supplies start building up there
as opposed to instead of
Cushing
,
Okla.
,
which has long been the source of bottlenecks. That has kept Nymex crude, which
is priced there, at a noted discount to Brent.