U.S. Gulf Crude Premiums Narrow as WTI-Brent Spread Weakens
U.S. Gulf crude premiums weakened after the discount for West Texas Intermediate versus Brent narrowed.
The gap between WTI and Brent November contracts decreased $1.12 to $22.58 a barrel in New York. The spread settled Sept. 6 at a record margin of $26.87.
When Brent decreases versus WTI, it weakens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Heavy Louisiana Sweet’s premium lost $1 to $27 a barrel above above WTI at 12:20 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium lost $1 to $26 a barrel.
Among sour, or high-sulfur, grades, the premium for Mars Blend declined by 70 cents to $23 a barrel while Poseidon weakened 35 cents to $23 a barrel over WTI.
Southern Green Canyon’s premium narrowed $1.75 to $21 a barrel and West Texas Sour’s discount was unchanged at 90 cents a barrel below WTI. Thunder Horse’s premium slipped $1.50 to $25.50 above the benchmark.
The premium for Syncrude was unchanged at $8.75 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
The discount for Western Canada Select was unchanged at $10.60 a barrel.
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.