• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 4 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 41 mins Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 2 hours Australian Voters Reject 'Climate Change' Politicians
  • 18 mins Shale to be profitable in 2019!!!
  • 9 hours California Threatens Ban on ICE Cars
  • 9 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 9 hours IMO2020 To scrub or not to scrub
  • 7 days How can Trump 'own' a trade war?
  • 13 hours Global Warming Making The Rich Richer
  • 9 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 45 mins Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 49 mins DUG Rockies: Plenty Of Promise, Despite The Politics
  • 9 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 5 hours Some Good News on Climate Change Maybe

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