Looming pipeline start-up lifts WTI Midland

摘要

WTI crude prices at Midland are frming, buoyed by the imminent start-up of pipelines that will carry rising Permian basin output from west Texas to the coast. WTI priced at the Midland hub in west Texas has been trading at a $4.60/bl discount to WTI at Houston for the August trade month, $2.60/bl frmer than for July and far stronger than June’s $10.80/bl discount (see graph). WTI Midland is also frming against WTI at the Cushing hub in Oklahoma. The Permian crude has narrowed to a 25c/bl discount to the US marker for August, compared with 65c/bl for July and around $3.30/bl for June.