What Happened in Wyoming - Crude Differentials Tighten at Guernsey as Demand Rises, Production Ebbs

In the U.S., crude oil trading hubs like Houston, Midland and Cushing get the lion’s share of the market’s attention. But travel a bit further north and you can find one of the more unusual and liquid crude markets in the country — Guernsey, WY — a focal point for producers in Western Canada, North Dakota, Wyoming, Utah and Colorado. Over the last few months, Guernsey differentials have tightened significantly, finally flipping to a premium to Cushing. We have seen this phenomenon occur before, most notably seven years ago after the startup of the Dakota Access Pipeline (DAPL). In today’s RBN blog, we discuss the recent movement in Guernsey differentials and what the future could hold for the often-overlooked sales point.