West Texas Sour Crude Strengthens After Refinery Completes WorkDan Murtaugh and Eliot Caroom
West Texas Sour crude strengthened relative to the U.S. benchmark after a refinery that processes the grade completed maintenance.
WTS, a high-sulfur crude from the Permian Basin priced in Midland, Texas, strengthened by 85 cents to a discount of $4.75 a barrel below West Texas Intermediate in Cushing, Oklahoma, at 1:54 p.m., according to data compiled by Bloomberg.
Phillips 66 completed planned maintenance at its Borger refinery in the Texas Panhandle, Dennis Nuss, a Houston-based spokesman for the company, said in an e-mailed statement. The 146,000-barrel-a-day refinery processes primarily high-sulfur crude from West Texas and other locations, according to the company’s website.
WTI in Midland strengthened by 25 cents to a $3.50-a-barrel discount to its counterpart in Cushing.
The Permian Basin, which stretches over 75,000 square miles in western Texas and southeast New Mexico, is the largest and one of the oldest oil-producing basins in the U.S. Output has jumped 49 percent since 2007 to about 1.3 million barrels a day, according to data from the Energy Information Administration.