U.S. Gulf Coast Oil Premiums Widen as Brent Spread Holds Steady

U.S. Gulf Coast oils widened their premiums to West Texas Intermediate as the spread between WTI and Brent crude held near a three-month high.

Brent’s premium to WTI narrowed 10 cents to $18.65 a barrel at 2:15 p.m. in New York based on the contracts for March delivery, according to data compiled by Bloomberg. The spread reached $20.70 in intraday trading on Feb. 7, the widest gap since October.

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 (USCSHLSE)’s premium to the U.S. benchmark widened $1.20 to $23 at 2:11 p.m. Light Louisiana Sweet (USCSLLSS)’s premium to WTI added 60 cents to $19.80 a barrel.

Thunder Horse’s premium to WTI widened $1 to $19.70. and Mars Blend’s gained 40 cents to $16. Poseidon (USCSPOSE)’s premium widened 50 cents to $15.80 a barrel. Southern Green Canyon (USCSSGCN)’s premium widened $1.75 to $16.75 a barrel over WTI.

West Texas Sour (USCSWTSM)’s discount narrowed 10 cents to $3.75 a barrel.

The discount for Syncrude (USCSSYNS) against futures was unchanged at $23 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.

Western Canada Select (USCSWCAS)’s discount was unchanged at $33 a barrel. Bakken (USCSUHC1) oil’s discount narrowed 50 cents to $27 a barrel.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

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

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