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Light Texas Crude Oil Is Attracting More Buyers Ahead of a Winter Fuel Pinch

  • West Texas Light oil has more propane than benchmark WTI crude
  • Permian’s WTL crude production reaching 600,000 barrels a day
texas oil shale Permian
Photographer: Angus Mordant/Bloomberg

One type of crude from America’s most prolific shale patch is having its moment, riding on the coattails of the global winter fuels crunch that has caused massive price rallies. 

West Texas Light, a relatively new grade in the Permian Basin, is seeing a demand surge in recent weeks as buyers snap it up partly for its rich content of propane, a heating fuel that has shot up in value. It has been enough to shrink the WTL discount to benchmark West Texas Intermediate crude in Midland, Texas, to roughly 10 cents a barrel, from nearly 40 cents earlier this year, according to data from Argus Media.