As production in the Permian Basin continues to ramp up, the future of the WTI Midland market remains risky with potential for the downside.

Additional pipeline capacity is lacking in the area despite an active trading center of light, sweet crude oil that remains a major hub for storage and pipelines connecting directly to the Cushing and Gulf Coast markets.

Although there are currently four pipelines which contain WTI crude oil from Midland to Cushing and Houston, more capacity is greatly needed with the rapid rise in crude oil production in the Permian Basin.

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