West Texas Sour Strengthens as Magellan Fills Storage Tanks

West Texas Sour crude strengthens to narrowest discount vs WTI since March 25 after Magellan Midstream Partners LP said it’s filling storage tanks in Colorado City, Texas, for BridgeTex pipeline. * WTS +75c/bbl to discount of $6 at 201pm: data compiled by Bloomberg * WTI in Midland +5c/bbl to discount of $6.85 vs WTI in Cushing, Okla. * Magellan began filling storage tanks May 30: Robb Barnes, co.’s vice president for marine terminals and crude oil * Linefill on pipeline will follow storage tank filling: Barnes * Co. has 1.2m bbl storage in Colorado City: co. statement * BridgeTex pipeline will be able to deliver as much as 300k b/d crude to Houston from western Texas when operations begin * “It gives the market confidence that they’re moving on with BridgeTex commissioning,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “It created a demand for the amount of oil it takes to fill the tanks.”

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