WTI
Posted: Mon Jul 07, 2014 9:59 am
Reuters reported that EPD (yet to comment) has sold its first cargo of condensate since receiving Department of Commerce approval last week for the export of lightly processed condensate. EPD has entered into an agreement to sell 400,000 bbls to Japanese trader Mitsui, to be loaded and exported to Asia later this month or in early August for marketing to refiners. The reports indicated that EPD is also in discussions with other potential customers for export to both Asia and Latin America. While the contract economics, ultimate volume scalability, future capital investments and competitor responses remain a question mark, EPD’s early success thus far in receiving both regulatory clarification and a contractual commitment bear watching.
The increased market for condensate should help narrow the price between WTI and Brent. This is good news for the Texas oil market.
The increased market for condensate should help narrow the price between WTI and Brent. This is good news for the Texas oil market.