Sep/Oct (Autumn) are the primary months for maintenance and something like 1M+ bopd will be offline (so total demand will be reduced by 60M-70M BO over Sep & Oct and that will go to storage).
Expectation then, is that differentials to WTI (particularly in locations with most offline refinery production) will increase and WTI differential to Brent could also widen as this is localized issue.
If this does indeed cause further weakness to WTI during Sep and Oct, it further stresses the pricing decks for Reserves values.
Published pricing Aug 21 for North Dakota Light Sweet is $26.75/Bbl. This is published by Flint Hills as referenced by NDIC from their website. The realized price each company receives will of course differ depending on whether they have sales contracts, hedges, rail and how what percent they sell at spot. https://www.dmr.nd.gov/oilgas/directorscut/directorscut-2015-08-14.pdf
SSN Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
