U.S. Gulf Crude Premiums Strengthen After WTI-Brent Gap Widens
U.S. Gulf crude premiums stengthened after the discount for West Texas Intermediate versus Brent widened the first time in six days.
The gap between WTI and Brent November contracts increased $1.63 to $23.44 a barrel in New York. The spread settled Sept. 6 at a record margin of $26.87.
When Brent increases versus WTI, it strengthens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Heavy Louisiana Sweet’s premium to WTI widened 65 cents to $25.90 a barrel at 1:50 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium added 90 cents to $25.
Among sour, or high-sulfur, grades, the premium for Mars Blend added $1 to $22 a barrel while Poseidon strengthened 65 cents to $21.50 a barrel over WTI.
Southern Green Canyon’s premium widened 50 cents to $20.50 a barrel and West Texas Sour’s discount narrowed 5 cents to 85 cents a barrel below WTI. Thunder Horse’s premium increased 50 cents to $25.25 above the benchmark.
The premium for Syncrude was unchanged at $7.75 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 $10.50 a barrel.
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