By Commodities Now Since December 2010, the front-month WTI/Brent spread has widened significantly. The spread hit a record of -$19.54/ bbl on 21 February 2011 when TransCanada announced that the second phase of the Keystone project had started to operate. The term structure for WTI has also weakened dramatically. The M1/M6 time spread also reached a recent record, of -$10.48/bbl, on 10 February 2011 (Figure 1). James Zhang, Commodity Analyst with Standard Bank, believes the widening of both spreads have been driven by concerns over the containment risks at Cushing, the Nymex WTI…
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