Permian Now Selling At $8/Bbl Discount To WTI; Traded As Low As $11 Lower Than WTI -- Thank Goodness For The DAPL In The Bakken -- April 24, 2018

Permian is projected to be the largest oil patch in the universe. Reported earlier. Now, Platts is reporting that Permian crude oil differentials are at their lowest (greatest?) since August, 2014, as output exceeds expectations.

Permian Basin light sweet crude WTI Midland fell to its lowest level in more than three and a half years Tuesday, with rising production and limited takeaway capacity pushing down the grade's differential.

On Tuesday, S&P Global Platts assessed WTI Midland at WTI cash minus $8.35/b on trade data heard, down $2.25/b compared with Monday's assessment. Tuesday's differential is the lowest assessment for WTI Midland since August 26, 2014, when the differential dropped to minus $9/b.

But it was worse:

Earlier in the day, the grade had traded as low as minus $11/b before slightly recovering by the early afternoon to its assessed value.

For the Bakken? All I can say is thank goodness for the DAPL.Without the DAPL, Bakken crude would easily be selling at a similar discount to WTI.