| 1 | Maintenance at North Sea fields and a strong Urals crude market have also contributed to Brent's premium. | |
| 2 | One possibility is that investors demand a risk premium, separate from the better interest rate, to compensate them for investing in a foreign currency. | |
| 3 | By virtue of storage economics, that means that if there is surplus of Canadian heavy sours, it translates into a discount for WTI. | |
| 4 | You've got to see Canadian crude in particular trading at a significant discount to Gulf Coast crudes. That means WTI de facto is going to trade cheap relative to its historic norms. | |
| 5 | The difference between the spot and the forward price is the forward premium or forward discount, generally considered in the form of a profit, or loss, by the purchasing party. |
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