U.S. Gulf Oils Gain as Brent-WTI Spread Widest in Six Weeks
U.S. Gulf Coast crude premiums gained as West Texas Intermediate’s discount compared to Brent widened to the largest in six weeks.
The difference between the benchmarks widened 10 cents to $20.16 a barrel in New York, the widest gap since Aug. 16. When Brent rises at a faster pace than WTI, as it did today, it typically strengthens the value of U.S. grades competing with foreign oils priced against the European benchmark.
Heavy Louisiana Sweet’s premium added 70 cents to $20.20 a barrel at 2:06 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet increased $1 to $20 over WTI.
Poseidon’s premium gained 50 cents to $14. Mars Blend added 65 cents to $14.40 a barrel over WTI and Southern Green Canyon increased 75 cents to a premium of $12.75.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, widened 35 cents to $17.35 above WTI.
Bakken oil’s premium gained 25 cents to $2.25 a barrel.
The discount to WTI for Western Canada Select, a heavy oil blend from Alberta, narrowed $1.75 to $10. Syncrude’s premium to the U.S. benchmark widened $1.25 to $10 a barrel.
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