If you’re looking for the Brent-WTI price gap to close, you might not want to place any bets on it. A report this week from Raymond James says the imbalance is unlikely to end anytime soon. That may leave some in the U.S. oil industry a little envious as Brent has been selling at a premium as high as 16% more per barrel than WTI. Even though WTI spot prices have jumped up by as much as 35% through last week. Raymond James analysts say two factors, transportation constraints and export add-on fees, loom larger than others and will keep WTI depressed through at least the first quarter of 2018.
In A&D news: WPX Energy agreed to sell its gas-producing properties in the San Juan Basin and its Permian Basin Midstream joint venture. WPX said the deal will add more than $500 million to its coffers. The company will sell 30,000 net acres in the San Juan in Northern New Mexico and Southern Colorado to an undisclosed buyer for $169 million.
And the Keystone XL Pipeline faces decision day for its last regulatory hurdle. Regulators in Nebraska will vote on Monday on whether to approve the permit to allow construction of the long delayed project, which President Trump gave federal approval of in March.
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