Permian Basin crude prices have been depressed for months because there haven’t been enough pipelines to take all the West Texas crude to the Gulf Coast. Some of those pipeline constraints are now easing, and prices for Permian crude are finally starting to gain some ground, an analysis from the U.S. Energy Information Administration suggests.
Permian Basin prices are starting to catch up to crude prices at Houston and Cushing, Okla., thanks to recent pipeline additions that make it easier to get crude out of West Texas. The difference between crude oil prices from the Permian Basin and crude oil prices at the Houston and Cushing aggregation points started to narrow in September and continued to narrow in late January.
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