North Dakota crude production rose the most in 9 months in May
BISMARCK, North Dakota (Bloomberg) -- North Dakota, the second-largest oil-producing state in the U.S., saw output rise the most in nine months in May.
Output increased to 1,039,635 bpd in May, the state’s Department of Mineral Resources reported. It increased by 36,379 bpd from April, the largest month-to-month jump since August. Texas, which extracts more than 3 MMbpd, is the only state producing more crude.
Bakken oil from North Dakota, priced at Enbridge Inc.’s pipeline hub at Clearbrook, Minnesota, weakened by 5 cents to $7.30 a barrel below U.S. benchmark West Texas Intermediate in Cushing, Oklahoma, at 1:35 p.m. New York time, according to data compiled by Bloomberg. It’s the largest discount since Dec. 31.
About 34% of North Dakota’s oil left the state by pipeline and 59% by rail in April, according to the state’s pipeline authority.
It costs $9 to $10 a barrel to transport oil by train to East Coast refineries, and $6 to $7 a barrel to ship crude by rail to Washington plants, Tesoro Corp. said in a February presentation to investors.
The discount of Bakken crude priced at the wellhead to Brent crude, the benchmark for overseas crude shipped to the U.S., increased to $18.58 a barrel, according to data compiled by Bloomberg.