West Texas Sour Weakens After Ponca City Refinery Flaring

The discount for West Texas Sour oil widened after flaring was reported at ConocoPhillips (COP)’ Ponca City refinery in Oklahoma.

West Texas Sour’s discount widened $2.65 a barrel to $8.35 a barrel below West Texas Intermediate at 3:54 p.m. in New York, according to data compiled by Bloomberg. WTI in Midland, Texas, widened its discount versus the benchmark grade at Cushing, Oklahoma, by $2.90 to $7.50 a barrel.

The 187,000-barrel-a-day refinery flared gases late yesterday, Paula Cain, director of the city’s emergency management division, said in a telephone interview.

In the U.S. Gulf Coast region, Mars Blend’s premium to the benchmark fell 70 cents to $11. Poseidon’s premium decreased 35 cents to $9.85, while Southern Green Canyon’s weakened 50 cents to $9.50. The three grades are used in the Argus Sour Crude Index.

The premium for Thunder Horse, a sour oil with lower sulfur content than the other three grades, fell 5 cents to $14.65.

Sweet oils gained against the benchmark. Light Louisiana Sweet’s premium to WTI added 25 cents to $17.75 a barrel. Heavy Louisiana Sweet strengthened 25 cents to a premium of $16.75.

Western Canada Select’s discount to WTI narrowed 75 cents to $16.25. Syncrude’s discount widened 50 cents to $2. Bakken oil’s discount was unchanged at $6.50.

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