The latest weekly oil inventory stats from the Energy Information Administration showed that crude stocks in Cushing, Oklahoma fell 1.4 million barrels to 24.1 million, the lowest since the week ending March 23.
It appears that the glut of crude is starting to work its way out of the NYMEX delivery point, which should contribute to further strengthening of the front of the WTI curve. The Aug/Sep spread has tightened from -48 cents at the close Tuesday, to -39 cents.
If the spread continues to strengthen, and concerns about Forties quality weighs on August IPE Brent futures, the August WTI/Brent spread could conceivable turn positive, the normal state before the refinery glitches exacerbated an already oversupplied Midcontinent crude market.
The question the Barrel has to ask is: does this mean the "broken" WTI contract is "fixed"?
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