In Texas, prices are heading in that direction. A subsidiary of Plains All American Pipeline bid just $2 a barrel for South Texas Sour on Friday, while Enterprise Products Partners LP offered $4.12 for Upper Texas Gulf Coast crude this week, according to pricing bulletins.
Offers could fall further if benchmark West Texas Intermediate crude futures -- which have lost three-quarters of their value this year -- continue to tumble. WTI closed below $20 a barrel this week for the first time since 2002. That bodes ill for producers locked into contracts with suppliers, as the daily price they earn for their crude moves with the broader market.
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