And the glut on the Gulf Coast is likely to grow. In January, the southern leg of

The U.S. Gulf Coast—home to the world’s largest concentration of petroleum refineries—is suddenly awash in crude oil. So much high-quality U.S. oil is flowing into the area that the price of crude there has dropped sharply in the past few weeks and is no longer in sync with global prices. In fact, some experts believe a U.S. oil glut is coming. “We are moving toward a significant amount of domestic oversupply of light crude,” says Ed Morse, head of commodities research at Citigroup. Unthinkable five years ago, the abundance of petroleum reflects surging output from oil fields in West Texas and North Dakota, as well as new pipeline routes to move crude to the refining and petrochemical complexes that line the coasts of Texas and Louisiana. And the glut on the Gulf Coast is likely to grow. In January, the southern leg of TransCanada Corp.’s . […]

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