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WTI delivered to East Houston hits highest premium in nearly three years
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WTI delivered to East Houston hits highest premium in nearly three years
May 1, 2024 11:21 AM

HOUSTON, May 1 (Reuters) - Oil takeaway capacity from

the Permian basin, the largest U.S. shale field, is expected to

tighten next month due to scheduled pipeline maintenance, which

is already driving up the premium for delivered WTI into East

Houston.

The 642-mile Wink-to-Webster pipeline, operated by Exxon

Mobil ( XOM ) and which ships more than 1 million barrels per

day (bpd) of crude and condensate from the Permian Basin to the

Gulf Coast, is due downtime next month for a 10-day scheduled

maintenance period.

"Of course that means crude oil supplies are supposed to

back up in the Permian Basin while crude oil inventories are

drawn along the Gulf Coast", said Andrew Lipow, president of

Lipow Oil Associates in Houston.

The spread between West Texas Intermediate (WTI) crude and

the same grade delivered to Magellan's East Houston terminal

(MEH) hit its widest point on Monday at a $1.25 per barrel

premium, the widest since early June 2021, according to LSEG

data.

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