Permian crude prices soar to highest since March. Oil price discounts in Midland have narrowed sharply, converging towards WTI in Houston. The discount is now at its smallest since March 2018. Discounts once traded nearly $20 per barrel below WTI in Midland, but the discount has now fallen to roughly $2.25. Some midstream capacity has been added in recent months, while production growth hit a rough patch this month because of cold weather.
The Permian takeaway capacity issues should be resolved by Q4 2019.
Good news for a lot of our Sweet 16
Good news for a lot of our Sweet 16
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group