Shale Market

With the price of oil hovering at 6 year lows, some good news is coming from shale markets in the U.S. The two largest suppliers in the shale oil futures market, West Texas and North Dakota produce over 60% of shale oil in the U.S. “West Texas Intermediate crude delivered to Midland, Texas is trading at a record $2.75 premium to benchmark U.S. futures. North Dakota's Bakken crude fetches more than 50 cents more, the highest in two years.” “Newly built pipelines in Texas are increasing demand for local crude, while Midwest refiners are snapping up Bakken supplies following unexpected month-long outage in Canada.” Oil supply at Cushing is tight and refineries are bidding aggressively for the dwindling stock of crude oil.