Bakken oil strengthened to a premium against West Texas Intermediate crude after Tesoro Corp. (TSO) said it was ahead of schedule in construction of an offloading terminal for the grade at its Washington refinery.
The 60,000-barrel-a-day capacity rail terminal, which is permitted to receive 30,000 barrels of oil a day, will begin operation in September, Chief Financial Officer Scott Spendlove said on a conference call today.
Bakken oil strengthened $3 to a $1 premium to WTI at 12:09 p.m. in New York, according to data compiled by Bloomberg. That’s the first time since December that the grade has traded at a premium.
Syncrude’s premium to WTI weakened 30 cents to $1.50 a barrel. Western Canada Select’s discount widened 75 cents to $15.
On the U.S. Gulf Coast, Mars Blend’s premium to WTI widened 55 cents to $9.55 a barrel. Poseidon’s premium added 95 cents to $8.65, while Southern Green Canyon’s increased 65 cents to $8.50. The three grades are used in the Argus Sour Crude Index.
Thunder Horse, a sour crude with lower sulfur content than the other three grades, increased 65 cents against WTI to a premium of $13.50.
Light Louisiana Sweet’s premium to WTI added $1.05 to $15.55 a barrel. Heavy Louisiana Sweet’s premium increased $1.15 to $15.65 a barrel.
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