In June and July, Basin Pipeline’s deliveries to Cushing, OK and Wichita Falls, TX reached levels not seen since November 2023 as traders responded to an unusual price premium at the Cushing hub.
According to East Daley Analytics’ Crude Hub Model, Basin Pipeline deliveries to Cushing and Wichita Falls jumped from ~322 Mb/d in May ’25 to an average of ~417 Mb/d the following two months. The increased throughput coincided with a drastic change in regional price spreads between WTI and the Houston and Midland markets.
From January-May 2025, WTI traded at an average $4.34/bbl discount to Houston and $4.02 under Midland prices. The spreads flipped in July, with WTI trading at an average $3.91 premium to Houston and $4.11 over Midland. Operators reacted to the market signal, sending Basin’s deliveries to Cushing and Wichita Falls to an almost two-year high to capture the premium WTI pricing (see figure).
Plains All American (PAA; 87% stake) operates and predominantly owns Basin Pipeline. The remaining interest belongs to Enterprise Products (EPD). Basins’s capacity ranges from 240-450 Mb/d, depending on the segment.
In June, deliveries to Plains Pipeline en route to Cushing rose 23% M-o-M and another 7% in July. Deliveries to Wichita Falls Station via NuStar Energy Pipeline skyrocketed 100% M-o-M from 1.52 MMbbl in May to 3.05 MMbbl in June. In July, deliveries increased 7% to Cushing and 14% to Wichita Falls Station.
The re-routing of Permian barrels to Cushing and Wichita Falls in June-July negatively affected pipelines bound for Houston. Over the same period, BridgeTex Pipeline deliveries to Houston decreased from ~411 Mb/d to ~388 Mb/d.
See East Daley’s Crude Hub Model for more information. Overall, Basin Pipeline’s surge in deliveries to Cushing and Wichita Falls reflects favorable WTI pricing differentials. As spreads flipped, flows shifted to Cushing and Wichita Falls, underscoring how price signals continue to drive crude routing and regional supply dynamics across Permian systems. – Alec Gravelle Tickers: EPD, PAA.
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