The report makes the connection that adding Red Oak and other expansions would result in about 75% utilization after 2021, or about 3.3 million bb/d of capacity out of Cushing where it’s 100% today. Seaway’s 10-year contract expires in 2021-2022 and current long-term rates for Seaway and Market Link are about $2.30/bbl for light.  The Bernstein report says that will make it difficult to charge more than $2/bbl.

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