WTI-Bakken Spread Remains Tight Signaling Adequate Takeaway Capacity

To say the least, it's been frustrating that Bloomberg and Platts removed "free" access to daily Bakken spot prices. But it is what it is.

Occasionally we find a site that provides an update (and even analysis, sometimes) regarding the Bakken-WTI spread.

MarketRealist is reporting:

From a short-term perspective, the spread changed by $2.00/barrel over the week (with Bakken moving lower relative to WTI Cushing) which was a negative catalyst for producers in the region.

However, over the medium to long term, increased infrastructure has allowed for differentials to close and stabilize and has even spurred major Bakken operators such as Continental Resources (CLR) to change guidance on its realized differentials to be closer to WTI.

These developments are medium-term positive catalysts for other operators in the region, such as Whiting Petroleum (WLL), Kodiak Oil & Gas (KOG), and XTO Energy (part of Exxon Mobil, XOM) and indeed over the medium-term the spread had closed in to trade around par where it was trading as wide as $10/barrel in October 2012, and as wide as $27/barrel in February 2012.

Much more at the linked article, including a very nice graph.