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WTI Delivered to East Houston Hits Near 3-Year High Premium

OIL

Oil takeaway capacity from the Permian basin, the largest US shale field, is expected to tighten in June due to scheduled pipeline maintenance, according to Reuters.

  • This is already driving up the premium for delivered WTI into east Houston, Reuters said.
  • The WTI crude vs its delivered price into Magellan's East Houston terminal (MEH) widened to $1.25/b, the largest premium since June 2021.
  • Exxon Mobil’s 642-mile Wink-to-Webster pipeline ships over 1m b/d of crude and condensates from the Permian Basin to the USGC but is set for 10 days of scheduled maintenance in June.
  • This will cause some back up of crude in the Permian basin while crude inventories are drawn along the USGC.

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