Now, today, Argus announces yet another benchmark: West Texas Light which will be distinct from West Texas Intermediate. Press release (April 10, 2019)/link here.
- WTI: Cushing
- WTI Permian: 40-44°API
- WTL: Permian light oil, Midland terminals (44.1-49.9°API)
- WTH: Houston light, pending, as volumes grow.
Global energy and commodity price reporting agency Argus today launches a new light crude price assessment to reflect growing light oil production in the Permian basin of west Texas and New Mexico. The new West Texas Light (WTL) price, published daily in the Argus Crude report, is for Permian basin crude with a gravity of 44.1-49.9°API traded at terminals in Midland, Texas.
Midland is the chief gathering hub for Permian basin crude, the fastest growing source of oil in the world. An increasing share of Permian crude is lighter than 44°API, and midstream companies have created the WTL stream to separate lighter crude from the denser main Permian WTI grade, which is typically at 40-44°API.
Much WTL trade is taking place at differentials to Argus’ benchmark WTI Midland price, which is assessed at terminals in Midland, Texas. Argus will publish its new WTL price assessment as a differential to WTI Cushing as well as an outright number.
WTL has also begun to trade at Houston at a differential to the benchmark Argus WTI Houston price, which is widely used to price US exports. Argus WTI Houston, which is assessed at Magellan’s MEH terminal, is also the settlement price for derivatives contracts on the Ice and CME exchanges, where open interest currently stands at 200 million barrels with daily trading volumes topping 10 million bbls. Argus intends to publish a separate WTL Houston index as volumes grow.WTI, Permian, tends to be 40-44°API.
WTL is a lighter crude, probably competing directly with Bakken.
For what it's worth, I have a page devoted to the "types" of oil. Link here.
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