More than one year after the Nymex Cushing benchmark sank below zero for the first time ever, crude oil demand remains weak as a poor arbitrage from the Permian basin limits sell-side opportunities. Permian spot trade liquidity at the US Gulf coast has shifted toward refinery supply rather than exports, ultimately deteriorating the pipeline arbitrage and weighing on spot trade liquidity as speculative buying dies out.

In this episode of The Crude Report, Argus Americas Crude Associate Editor Amanda Hilow and Deputy Editor Amanda Smith, discuss the Midland-to-Houston spread, key elements weighing on market opportunities and expectations going forward.

Related links

• Argus WTI Houston price assessment