LONDON May 10 Goldman Sachs commodity strategist Jeff Currie said on Wednesday if the U.S. government were to introduce a border tax adjustment on crude oil imports, the spread between Brent and U.S. futures would widen dramatically.
The principal impact of a border tax adjustment would be to raise the price of domestic crude compared with international grades such as Brent.
"It would blow out the Brent/WTI spread. You could see WTI trade $15 above Brent," Currie told the S&P Global Platts Crude conference.
The premium of Brent crude futures over West Texas Intermediate (WTI) futures is currently around $2.81 a barrel.
The government of President Donald Trump has considered a Republican proposal for a border tax adjustment system that would levy a 20 percent tax on all imports while exempting exports.
Domestic U.S. crude prices would automatically rise, pushing up the cost of anything from gasoline to plastics.
Border tax advocates claim the impact of higher import costs and perceived subsidy for exports would be a rise in the real exchange rate of the U.S. dollar.
"For every non-commodity, the dollar does all the work so that the consumer does not pay the price ... oil does not have that leverage," Currie said. (Reporting by Julia Payne and Amanda Cooper, editing by Louise Heavens)
Finnish court confiscates Uber manager's assets amid legal probe
HELSINKI, June 28 Helsinki district court on Wednesday ordered the assets of Uber's Finnish country manager be confiscated until police conclude an investigation into whether the U.S. ride-hailing firm operates an illegal taxi service in Finland.
Neuberger Berman's Dyal buys minority stake in hedge fund Atalaya
BOSTON, June 28 Dyal Capital Partners, the Neuberger Berman Group unit that buys minority stakes in hedge and private equity fund firms, has bought a piece of private credit and special opportunities investor Atalaya Capital Management, marking its third investment in three months.