Halcon Strategy Benefits From WTI Rise

We've seen a slow price rise in West Texas Intermediate crude, which is now approaching $100 a barrel. This rally has come while the global benchmark for crude prices, Brent crude, hasn't really moved much at all, remaining firm at around $109.  A flat price for global crude with a rising price for U.S. crude has been just the opposite of what the fundamentals seem to say, with a dropping supply profile for Brent crudes and a continuing surplus of domestic crude in Cushing, Okla.

But there are reasons why what we think we see isn't what's actually happening. On the European side, Cyprus bank issues have shown just how problematic Europe remains, sitting almost always on the edge of a new recessionary event (or worse). In the U.S., there are new options for relieving the surplus of crude flooding the Gulf Coast from tight oil plays and Canadian sands. There is the increasing transport of crude by rail as well as the now better logistical activity of the Seaway pipeline. ...432 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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