• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 6 minutes Question: Why are oil futures so low through 2020?
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 3 hours Energy from thin air?
  • 4 hours Fast-charging, long-running, bendy energy storage breakthrough
  • 7 hours Can LNG Kill Oil?
  • 13 hours CoV-19: China, WHO, myth vs fact
  • 1 day Has Trump put the USA at the service of Israel?
  • 9 hours The New Class War Exposes the Oligarchs and Enablers
  • 1 day Solar Cells at 25 Cents Apiece (5 cents per watt)
  • 3 hours Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 1 day Trump reinvented tariffs and it worked
  • 2 hours Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 8 hours Cheap natural gas is making it very hard to go green
  • 8 hours "For the Public's Interest"
  • 2 days Is cheaper plastics feedstock on the horizon?

Iran Cuts Start To Tighten Oil Market

rig

Friday August 31, 2018

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

(Click to enlarge)

Key Takeaways

- Crude inventories dipped more than expected, helping to push up oil prices this week.

- Unlike in previous weeks, imports remain subdued.

- Gasoline demand was up sharply, and stocks were down, another bullish sign.

1. Midland discount rises to more than $20 per barrel

(Click to enlarge)

- The discount for Midland WTI relative to WTI in Houston surpassed $20 per barrel in recent days.
- That means that for oil producers in West Texas who have not secured pipeline space or hedge for their production, they are selling their oil on the spot market somewhere in the mid-$40s per barrel, while WTI sits near $70.
- The pipeline crunch is expected to grow worse this year as more output comes online, which means the discount is not going away.
- This will damage cash flow for Permian drillers for the next few quarters, and they should underperform E&Ps focused on the Eagle Ford and Bakken for the next year or so.

2. Argentina’s peso crashes again

(Click to enlarge)

- Argentina’s peso has lost more than 50 percent of its value…




Oilprice - The No. 1 Source for Oil & Energy News