Sub-$50 Oil Surfaces in North Dakota Amid Regional Discounts – Bloomberg

Oil market analysts are debating if oil will fall to $50. In North Dakota, prices are already there.Crude sold at the wellhead in the Bakken shale region in North Dakota fell to $49.69 a barrel on Nov. 28, according to the marketing arm of Plains All American PAA Pipeline LP. That’s down 47 percent from this year’s peak in June, and 29 percent less than the $70.15 paid for Brent, the global benchmark.The cheaper price for North Dakota crude underscores how geographic and logistical hurdles can amplify the stress that plunging futures prices have put on drillers in new shale plays that have helped push U.S. oil production to the highest level in 31 years. Other booming areas such as the Niobrara in Colorado and the Permian in Texas have also seen large discounts to Brent and U.S. benchmark West Texas Intermediate.

via Sub-$50 Oil Surfaces in North Dakota Amid Regional Discounts – Bloomberg.

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