Price differential evaporates: Midland oil traded at a premium on Friday
While Permian producers, like everyone else in the oil business, must contend with the return of $50/bbl oil, they can take heart from one recent development. The Midland oil differential has vanished.

Surging production from the heart of U.S. shale rapidly overwhelmed takeaway capacity in 2018, creating major discounts. WTI in Midland traded at a slight premium to NYMEX WTI in late January 2018. This would not last, however, and the differential rapidly widened to over $10/bbl, peaking at $17.90/bbl at the end of August. Differentials on this scale negated many of the advantages the Permian offers, forcing operators to scale back growth plans.

While $15< differen...

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