In the Northern White market, 100m fell by 1% this week while 40/70m fell. 30/50m prices remained flat, indicating continued limited demand. In the Permian, FOB Odessa 40/70m remained relatively flat this week, while local 100m and 40/70m continue to set precedent for quarterly lows.
In the Northern White market, 100m fell by 2% this week while 40/70m fell by 0.8%. 30/50 prices remained flat, indicating continued limited demand.
In the Permian, FOB Kermit
According to S&P Global, Midland (Permian) oil differentials moved from an $8 discount in Jan ’19 to a $1 premium in October ’19 relative to Cushing (WTI) as a result of key midstream pipeline infrastructure projects taking substantial oil volumes from the Permian to the Gulf Coast, namely Grey Oak (online in 2020), EPIC, and Cactus II. This could be driving the trend in increased completions of DUC wells, as local prices improve and the logistical transition is made by truckers to haul sand instead of oil, providing temporary relief for in-basin sand prices on the demand side. However, will global macro-economics cap Permian oil prices at or near par with WTI and if so, could sand prices be projected to drop even further?
In the Northern White market, while pricing for 100m and 30/50m remained relatively flat, exhibiting intra-week price volatility, 40/70m prices fell. While prices remain flat, 40/70 appears to have slightly higher W/W price volatility in comparison with its 100m and 30/50m counterparts.
We hope everyone had a safe and fun 4th of July, as expected it was a quiet holiday week in the frac sand market. Pricing for both northern white and FOB Kermit remained in the same range, but dropped slightly lower. An expected quiet week for overall activity and since many mines are not running at full capacity pricing remained at a relatively stable position.
Northern white suppliers continue to look at the Eagleford as the market to provide support. A slowdown in activity coupled with two additional mines coming online has put pressure on pricing and left many transloads with additional supply in the basin.
In the northern white market, we have heard of mines scaling back utilization as demand has slowed in major basins. Activity in south Texas has flipped in the past week with…
In the northern white market, 40/70m has seen a solid increase in demand shown with higher FOB mine pricing. Most of this demand is centered in the Eagleford and the uptick in STX activity is keeping NWS afloat, as we have seen a decrease in spot transactions for northern white in the Permian.
Denver, June 13, 2019 — PanXchange, an OTC exchange and price discovery platform for physical commodities, today announced that it will distribute its proprietary pricing data for hydraulic fracturing proppants, better known as frac sand, through Quandl, a leading provider of financial and alternative data for financial professionals.
The northern white market saw a slight uptick in demand for 40/70m from previous weeks, however not shown by pricing as FOB Odessa remained…