By November 21, 2018 0 Comments Read More →

Bakken Oil Flows Pressure Gulf Coast Crude Grade Prices

Crude flowing from North Dakota’s Bakken shale is taking a larger share of the U.S. Gulf Coast market, siphoning demand from refiners and exporters for local grades, traders and brokers said.

Bakken crude at Beaumont and Nederland, Texas, traded around a $2 per barrel discount to Light Louisiana Sweet (LLS) on Nov. 20, a spread that has made Bakken crude more attractive.

Rising production in the nation’s third-largest shale play has filled pipelines and Midwest refiners’ demand for the light, sweet crude, pushing more toward the Gulf Coast on TransCanada Corp.’s (NYSE: TRP) 470-mile Marketlink pipeline to Nederland, Texas.

Bakken crude pricing “is pretty distressed,” one trader said. For buyers who can grab it at the Gulf Coast, the crude “is going to look a lot more attractive than the local grades.”

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Posted in: Daily News

About the Author:

The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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