Yepper!  Time to LOAD UP!

Diminishing Spread

The rapid production ramp-up outstripped existing pipeline and refining capacity, creating a glut in several regions of the U.S. that played into the hands of crude processors selling gasoline and diesel at prices linked to the global cost of oil.

The record $17.46-a-barrel spread to the benchmark should diminish by 66 percent to as low as $6 a barrel in 2013 as more than 20 pipelines go into service, “taking the U.S. crude transportation market from heavily distorted to very efficient in less than 24 months,” Paul Sankey, an analyst with Deutsche Bank in New York, said in a Dec. 19 note to investors.