December 18, 2023 [Reuters]- Oil is flooding out of Texas in the final weeks of 2023, as traders find outlets abroad for record U.S. production and dodge a hefty year-end tax bill on their inventories.
U.S. West Texas Intermediate crude’s wider discount to the global benchmark Brent , currently at about $4.50 per barrel, is making U.S. oil more attractive to European and Asian refiners.
Another factor driving the exodus is an end-of-year tax on oil held in storage in Texas.
In Oklahoma, the tax rate is around 1%, while in Texas it is around 2.50% to 2.75%, according to energy research firm Energy Aspects.
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data