U.S. Gulf Coast Oil Premiums Weaken as WTI-Brent Spread Narrows
U.S. Gulf oil premiums weakened as the difference between West Texas Intermediate and Brent narrowed.
The spread between the two benchmark crude futures for February delivery settled at $9.60 a barrel today. The January Brent contract expired yesterday. The difference between the January WTI and Brent contracts was $11.22 yesterday. The differential has narrowed 66 percent since reaching a record of $27.88 a barrel Oct. 14.
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.
Light Louisiana Sweet’s premium to WTI narrowed 90 cents to $10.50 a barrel at 3:45 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium narrowed 85 cents to $10.25 a barrel.
Thunder Horse’s premium to WTI decreased $1.20 to $8.40. The premium for Mars Blend lost 20 cents to $7 a barrel. Poseidon’s premium narrowed 35 cents to $6.40 a barrel over WTI.
The discount for Western Canada Select was unchanged at $15.75 a barrel.
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