• 4 minutes WTI Heading for $60
  • 8 minutes China Ready For Talks With the US to Resolve Trade Issues
  • 15 minutes Pros and Cons of Coal
  • 2 hours Big Brother Is Watching You: Chinese ‘Gait Recognition’ Tech IDs People By How They Walk
  • 1 hour Germany: 'Europe United' Must Be Answer To Trump's 'America First'
  • 3 hours Could EVs Become Cheaper than ICE Cars by 2023?
  • 3 days Bolsonaro Wins in Brazil
  • 2 days Court Blocks Keystone XL Construction
  • 7 hours New Oil Order- Diplomacy, Geopolitics and Economics
  • 10 hours A Future of Ultrarich vs Useless
  • 3 hours A lesson from VW
  • 3 days Iran Sanctions Include Sunken Tanker and Closed Bank
  • 3 days 10 Incredible Facts about U.S. LNG
  • 4 days Layoffs, Furloughs and Shutdown at Faraday Future's EV factory
  • 3 days Frankenstein Web Tech World? Father of Web Says Tech Giants May Have To Be Split Up
  • 4 days Khashoggi, Oil, Globalism and the PetroDollar

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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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