Permian crude fundamentals… RBN Energy – Commodity Research Group

October 4, 2019 by Jim Colburn Leave a Comment

The always excellent RBN Energy discusses Permian fundamentals, here…

”The Permian’s crude-oil landscape is continually changing — there is absolutely no doubt about that. Over the past four months alone, we have seen two new pipelines come online: first, Plains All American’s Cactus II pipeline (capacity of 585 Mb/d), and, more recently, crude oil flows on the new EPIC system (interim capacity of 400 Mb/d). In addition, we expect the Gray Oak Pipeline, with a capacity of 900 Mb/d, to begin operations by the end of the year. All three pipes have origination points in West Texas with the ability to deliver large volumes of crude to Gulf Coast refineries and export terminals.”

And note their chart showing price differentials (MEH=Magellan East Houston):

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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