Prompt WTI Discount Narrows

The discount for prompt WTI relative to the second month contract narrowed by 29 cents per barrel to $1 on Monday, suddenly reversing a trend that last week pushed the spread to a six-month low.

It was not immediately clear why the spread narrowed so sharply, but traders said it may indicate that concerns of Cushing builds in December have temporarily abated. The tighter spread may have also stemmed from short covering ahead of the expiration of the December WTI contract on Friday, according to traders.

Energy intelligence firm Genscape on Monday also reported that Cushing inventories rose by 1.2 million barrels last week.

Reporting by Liz Hampton