New Permian pipelines to narrow key differential

摘要

New York—As more takeaway capacity is added to bring Permian Basin crude to US refining centers, the differential between WTI Midland, and WTI Cushing crude is expected to narrow to under $2/b, a Bentek Energy analyst said Friday. The comments came as Plains All American and Sunoco Logistics this week announced pipeline projects to carry growing crude production in the basin to the market. In mid-August, the WTI Midland to Cushing differential ballooned to over $14/b as increased production was unable to get to the market and depressed WTI Midland values. Production in the basin in August was at about 1.7 million b/d, with pipeline takeaway capacity at 1.27 million b/d, according to Platts’ unit Bentek.