Oil production in West Texas is about to outgrow pipeline capacity, a combination that knocked down crude prices in the region three years ago. West Texas Intermediate crude at Midland, Texas, the heart of the Permian Basin, sank this month to the lowest level since September. It’s the weakest for this time of year since 2014, according to data compiled by Bloomberg. That year, the discount versus the same oil in Cushing, Oklahoma, the U.S. benchmark, plunged to $21 in August as the shale boom flooded the region with oil. Permian output is expected to rise to 2.65 million barrels a day in December, said William Foiles, an oil analyst with Bloomberg Intelligence. In comparison, takeaway capacity in the region may only reach 2.54 million barrels a day by end of this year, according to Bloomberg Intelligence pipeline analyst Michael Kay. While Midland prices probably won’t reach 2014 levels, […]