Brent-WTI Spread to Widen in 2019, Stratas Advisors' Petersen Says

The video discusses the current and future state of oil prices, focusing on the impact of production cuts by OPEC and its allies. It highlights the challenges of maintaining price support through compliance and the potential market dynamics in the coming year. The role of US production as a structural element in the market is examined, questioning how OPEC will adapt to this permanent change. The video also considers the implications of US export capacity expansion and the potential for price weakness if compliance falters.

What is the expected price of Brent by the end of the year according to the discussion?

• $55

• $65

• $75

• $85

What is one of the main challenges facing the oil market in the first half of 2019?

• New environmental regulations

• Increased demand from Asia

• OPEC's decision to increase production

• Midstream takeaway constraints in the Permian

What could happen if waivers are renewed at current volumes?

• Increase in oil prices

• Decrease in market compliance

• Injection of more price weakness into markets

• Stabilization of global oil supply

Which country is expected to take a few months to comply with production cuts?

• United States

• Russia

• Canada

• Saudi Arabia

What is the significance of the US in the global oil market as discussed?

• It has agreed to OPEC's production cuts

• It has the largest oil reserves in the world

• It is the largest importer of oil

• It is a growing swing producer with increasing export capacity