Permian Shale Boom Upending Values of Heavy and Light Crude Oil
This article is for subscribers only.
Skyrocketing oil production in the Permian Basin has reversed a decades-old price relationship between heavy and light crude in the U.S.’s largest oil patch.
West Texas Sour traded at a $5-a-barrel premium to West Texas Intermediate in Midland, Texas, yesterday after reaching $10 on Aug. 19, the highest level in Bloomberg data dating back to 1989. WTS has averaged a 97-cent premium this year after averaging a discount in every year back to 1989.