What is Bakken Crude?
S&P Global Commodity Insights started publishing daily values for the new Platts Bakken crude assessment from April 22, 2014.
The Platts Bakken assessment by Commodity Insights reflects the spot value of Bakken crude oil delivered into North Dakota terminals with rail and rail/pipeline loading capabilities.
The Williston Basin, and those storage points where market participants determine the best market for their crude, represents the decision point for supply/demand fundamentals that yields the most comprehensive value for the marginal Bakken barrel.
Facilitating price discovery as close to the wellhead as possible encompasses the widest variety of market participants, and liquidity at these Williston Basin supply chain nodes, the terminals where Bakken can move by rail or rail/pipeline, has increased in the past year.
We have observed that the focal point of this spot liquidity is at these Williston Basin supply nodes, where end-users, marketers, and traders purchase crude from producers/marketers for eventual movements down the supply chain.
The Bakken assessment reflects the value of Bakken crude with a maximum sulfur content of 0.2% and a maximum API of 42. The underlying volume for the Platts Bakken assessments reflects volume of 1,000 b/d, or 25,000 barrels.
Our assessment reflects the value of those barrels moving from the wellhead to local terminals, where rail cars are loaded terminals that also have the optionality for rail and pipeline movements are also included in the assessment process.
These terminals are located in a relatively tight geographic area in North Dakota, and the price difference between transactions at each terminal is negligible.