Free Trial

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.
114 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

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.