So it appears the “floor” for West Texas Intermediate prices (at the moment) is $40, as evidenced by a January Fed survey by CNBC. Prices are currently roughly $5 above the January 28 low of $44.45 – a climb of approximately 10%. The price of Brent, on the other hand, is flirting with the $60 range – up more than 20% from its January 9 low of $46.59.

More than half of the 33 economists in CNBC’s report believe the widening differential is in response to excess supply. The United States crude inventories are at an all-time high and continue t...


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