An ongoing glut of Permian shale oil combined with a shortage of pipeline capacity will likely see a discount of Gulf Coast prices of $more than $9 per barrel from Q4 of this year to Q3 2019, said Goldman Sachs. The investment bank said transport bottlenecks between the Permian basin and the Gulf coast have also contributed to the current spread of 19-$22/barrel between WTI and Brent.
An ongoing glut of Permian shale oil combined with a shortage of pipeline capacity will likely see a discount of Gulf Coast prices of $19-$22 per barrel from Q4 of this year to Q3 2019, said Goldman Sachs. The investment bank said transport bottlenecks between the Permian basin and the Gulf coast have also contributed to the current spread of more than $9/barrel between WTI and Brent.