BENTEK Energy Begins Monthly Market Report with 5-yr Crude Oil Forecasts
EVERGREEN, Colo., Feb. 4, 2013 /PRNewswire/ -- BENTEK Energy, the natural gas and crude oil analytics unit of Platts, today announced the launch of its new monthly report, Market Call: North American Crude Oil, which features five-year price forecasts for a host of North American low-sulfur oils, commonly known as light, sweet crudes.
The new monthly is designed to help energy producers, suppliers and other market participants better understand and estimate how changes to macro crude oil fundamentals will impact regional prices across North America.
"The resurgence of U.S. oil production is altering traditional flow patterns and by 2018 should greatly reduce the need for foreign oil," said Anthony Scott, manager oil analysis, BENTEK Energy. "As the value of crude transportation capacity is realigned, the West Texas Intermediate (WTI)-Brent and regional U.S. price differentials will feel the effect."
The forecasts take into account such market fundamentals as regional production, Canadian and waterborne imports to the United States, refining demand, and transportation economics across North America.
BENTEK analysts not only foresee record levels of light, sweet crude oils being produced in North America between now and 2018, they see those crudes reaching the U.S. Gulf Coast by several transportation means. As a result, price spreads between regional crude oils and WTI, the long-time U.S. barometer crude oil, are predicted to be quite volatile.
By 2018, WTI is forecast to average $74.33 per barrel (/b). Price spreads between WTI and international crude oils, such as Brent, are likely to remain wide at more than $19/b, the report shows, as North American production growth displaces foreign imports. Driving the North American production increases will be the Bakken, Eagle Ford, and Permian shale oil formations, which will combine for more than five million barrels of day of production in 2018.
Included in the monthly report are:
- The outright WTI forecast as well as ten regional price differentials to WTI, including Louisiana Light Sweet, Western Canadian Select and Bakken crude oils
- Key fundamentals of crude oil supply and demand in North America, including production, imports/exports and refining demand
- Crude oil production forecasts by PADD in the U.S. and by major producing area in Canada and Mexico
- Canadian imports to the U.S. by quality and total regional capacity
- Transportation economics by barge, rail and pipeline with a special emphasis on crude-by-rail
BENTEK Energy, the natural gas and crude oil analytics unit of Platts, collects and organizes market data on natural gas, natural gas liquids and oil markets from thousands of sources worldwide and transforms the data into actionable intelligence and key market insights. BENTEK provides a full range of products including daily market reports, online applications, comprehensive studies, consulting engagements and retainer services. BENTEK Energy was acquired by Platts in 2011.
About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping markets. A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with approximately 900 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com.
About The McGraw-Hill Companies: The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company's leading brands will include: Standard & Poor's, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries. Additional information is available at www.mcgraw-hill.com.
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