U.S. Gulf Oil Premiums Gain as Brent-WTI Gap Widens Near Record
Crude oil in the U.S. Gulf surged as the spread between benchmark West Texas Intermediate and its European counterpart, Brent, widened to a record.
The gap between WTI and its European counterpart widened $1.75 to $22.48 a barrel as of 2:32 p.m. in New York, after touching $23.55. The spread settled at a record high of $22.29 a barrel June 15.
When Brent gains versus WTI, it strengthens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Light Louisiana Sweet’s premium rose 85 cents to $18.85 a barrel over WTI as of 2:06 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet slipped 15 cents to $20.25 a barrel over the benchmark.
Among sour, or high-sulfur, grades, the premium for Mars Blend gained $2.25 to $16 a barrel, while Poseidon increased $1.90 to $16 over WTI.
Southern Green Canyon’s premium advanced $1.50 to $13.75 a barrel, while West Texas Sour’s discount narrowed 5 cents to 80 cents. Thunder Horse’s premium added $3.75 to $22.50.
The premium for Syncrude widened 50 cents to $9.50. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
The discount for Western Canada Select narrowed 10 cents to $18.65 a barrel.
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