Sweet Louisiana Oils Strengthen as WTI-Brent Spread Widens

The premiums for Light Louisiana Sweet and Heavy Louisiana Sweet oils strengthened as West Texas Intermediate crude’s discount to Brent widened for a second consecutive day.

The January WTI-Brent spread widened 60 cents to settle at $9.89 a barrel. The gap for the contracts nearest to expiration has narrowed by 65 percent since reaching a record of $27.88 a barrel Oct. 14.

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.

Light Louisiana Sweet’s premium above WTI increased 80 cents to $12.30 a barrel at 4:21 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium added 65 cents to $12.65 above WTI.

Thunder Horse’s premium widened 45 cents to $11.75 above WTI. The premium for Mars Blend added $1.65 to $9.40 a barrel. Poseidon strengthened 95 cents to $9.15 a barrel over WTI.

Southern Green Canyon’s premium increased $1.10 to $8.75 a barrel and West Texas Sour’s discount widened 5 cents to 85 cents.

The discount for Western Canada Select widened 40 cents to $12.75 a barrel.

Syncrude’s premium slipped 25 cents to $5 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.