Heavy Louisiana Oil Premium to Light Widens on Refining Profit
Heavy Louisiana Sweet’s premium to Light Louisiana Sweet rose as the profit for converting crude into distillate in the U.S. Gulf Coast increased.
The gap between the two oils widened 85 cents to $1.85 at 2:01 p.m. in New York, according to data compiled by Bloomberg.
The profit for converting two barrels of crude into one barrel of gasoline and one barrel of heating oil or gasoil in the U.S. Gulf Coast rose 59.3 cents to $23.11 today, according to data compiled by Bloomberg. The margin has risen 31 percent this year. Heavy oils typically produce a larger proportion of distillate fuels and less gasoline than light oils.
Thunder Horse’s premium widened 25 cents to $11.25. Mars Blend’s premium added 15 cents to $8.50. Poseidon (USCSPOSE)’s premium rose 5 cents to $8.30 a barrel.
Western Canada Select (USCSWCAS)’s discount to WTI was unchanged at $22. Syncrude (USCSSYNS)’s discount was unchanged at $2.75. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
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