Title : That $68 WTI Price? Not To Worry ... Look At The Midland / WTI Spread -- As Much As $15 -- RBN Energy -- July 17, 2018; 100% Of Bakken Wells Go To DUC Status
link : That $68 WTI Price? Not To Worry ... Look At The Midland / WTI Spread -- As Much As $15 -- RBN Energy -- July 17, 2018; 100% Of Bakken Wells Go To DUC Status
That $68 WTI Price? Not To Worry ... Look At The Midland / WTI Spread -- As Much As $15 -- RBN Energy -- July 17, 2018; 100% Of Bakken Wells Go To DUC Status
Wells coming off confidential list today:- 33994, SI/NC, Hess, BB-Burk-151-95-1807H-8, Blue Buttes, no production data,
- 33960, SI/NC, Crescent Point Energy, EPEUSC David 9-29-32-157N-99W TFH, Lone Tree Lake, no production data,
- 24050, SI/NC, Petro-Hunt, State 154-94-31C-32-6H, Charlson, no production data,
| $67.67↓↓ | 7/17/2018 | 07/17/2017 | 07/17/2016 | 07/17/2015 | 07/17/2014 |
|---|---|---|---|---|---|
| Active Rigs | 69 | 59 | 29 | 73 | 196 |
RBN Energy: lotteries, shippers, and trends in Midland price differentials.
Since early this year, the Midland crude differential has continued to widen, trading one day last week at a discount of $15.75/bbl to West Texas Intermediate (WTI) at Cushing, the widest spread since August 2014 before settling back to $11.25/bbl on Monday.
The wide price differential is a result of fast-growing production in the Permian and bottlenecked takeaway pipelines. But the trajectory of this increasing price spread has been anything but smooth. Lately, we have seen a blip in the price differentials right around the 19th or the 20th of each month.
In each of the last three months, for a short-lived 24 to 48 hours, the Midland-Cushing price differential has narrowed by $2/bbl or more as Permian shippers have gone on feeding frenzies. Today, we look at these brief upticks in pricing and the pipeline and trader mechanics behind them.
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