Light Louisiana Sweet Weakens as Seaway Reversal Nears

Light Louisiana Sweet oil weakened for the fifth straight day, the longest losing streak of the year, as buyers anticipate the arrival to the U.S. Gulf Coast of similar, cheaper crude on the Seaway pipeline.

The premium of LLS against West Texas Intermediate oil narrowed 40 cents to $12.35 a barrel at 4:09 p.m. on the New York Mercantile Exchange, according to data compiled by Bloomberg.

The premium is the smallest since Jan. 31. The gap between the two oils narrowed seven days in a row in December.

Enbridge Inc. (ENB) and Enterprise Products Partners LP (EPD) are expected to start pumping crude south from Cushing, Oklahoma, to the Gulf Coast tomorrow, according to a filing with federal regulators. A steep rise in Canadian and Midwest U.S. oil production in recent years, combined with a lack of transportation out of the Cushing storage hub, have created a supply glut and low prices there.

Heavy Louisiana Sweet crude widened $2.25 to trade at a $16 premium to WTI. The premium for Mars Blend, a medium sour crude, grew 75 cents to $11.

To contact the reporter on this story: Dan Murtaugh in Houston at

To contact the editor responsible for this story: Dan Stets at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.