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OIL: Physical WTI Prices at MEH Fall to Lowest Since October

OIL

Physical WTI prices at the main US hub of Houston have fallen to the lowest since October according to Bloomberg sources. The weakness is driven by poor overseas demand and building US inventories.

  • WTI for pipeline delivery at the Magellan East Houston terminal (MEH) fell to the lowest since Oct. 25 at $0.6/bbl above Nymex WTI compared with a premium of $1.55/bbl a month ago, according to Link Data Services
  • The arbitrage for cargoes to Asia is closed and contributing to building inventories on the US Gulf Coast.
  • PADD 3 inventories are at the highest seasonal level since the pandemic at just over 262mbbl.

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