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.