West Texas Intermediate (WTI) and Louisiana Light Sweet (LLS) crude oil price markers in the U.S. will be deeply discounted over the next several years as light domestic production pushes out waterborne imports

Wednesday, September 19, 2012

BENTEK's Crude Awakening Market Alert forecasts the WTI-Brent crude oil price differential will significantly widen to nearly $20/bbl over the next few years as the U.S. Gulf Coast refinery market replaces light and intermediate crudes sourced from overseas with domestic and Canadian production. LLS, which has historically traded on parity with Brent, will also disconnect from Brent as growing light U.S. crude production will be priced to first compete with intermediate and then with heavy imported crude. Over the next 10 years, these spreads will widen substantially if no further infrastructure projects are announced in the U.S. and Canada to alleviate capacity constraints.

BENTEK's new North American Perspective section of the Crude Awakening Market Alert series provides comprehensive analysis of how growing crude oil production will influence overseas imports to the U.S. and price spreads among WTI, LLS and Brent. The study also includes 10-year crude oil supply and demand forecasts for the U.S. and Canada and analyzes how these factors will affect the refining industry, helping you identify opportunities and risks for your business.

Key 10-year analysis included in BENTEK's Crude Awakening Market Alert:

• Forecasts of major differential price benchmarks to WTI: Brent, LLS, Mexican Heavy Sour Maya, Williston Basin (Bakken), Permian Basin (Midland) and Wyoming Light Sweet

• Updated supply and demand forecasts for each U.S. region, east and west Canada and a section dedicated to the Williston Basin

• An assessment of where new transportation options are needed in existing corridors and where new corridors may develop

• The outlook for U.S. reliance on foreign, non-Canadian crude and the possibility of displacement of crude imports to the U.S.

• Analysis of the effect on refineries from growing light-sweet crude production and possible responses from the refining sector


BENTEK's new Crude Oil Balances dataset provides 10-year supply and demand forecasts for crude oil in every region of the U.S. and Canada, enabling you to analyze the long-term market and be confident with your business strategy.

The Crude Oil Production Monitors provide comprehensive U.S. and Canadian coverage of the leading oil plays, including regional production forecasts, drilling activity, transportation and refining constraints and pricing analysis.

BENTEK's Petroleum Project Tracker is a cumulative database where information on all upcoming U.S. and Canadian crude oil infrastructure projects can be accessed, helping you monitor the potential impact of these projects on regional pricing differentials, storage opportunities and supply transportation routes.

To learn more, please contact your BENTEK sales representative, call BENTEK Sales at 1-888-251-1264 or reply to this email.