Heavy Louisiana Sweet oil’s premium to West Texas Intermediate on the spot market shrank to the narrowest level since January 2012 as Brent held at about $11 a barrel more than WTI.
Brent’s premium over the U.S. benchmark has fallen by more than half since February as refinery turnarounds and disappointing economic data out of Europe and Asia have diminished demand. The June European benchmark’s premium to WTI for same-month delivery was $11.24 a barrel at 2:14 p.m. New York time.
Gulf crudes like HLS compete with foreign oils priced against Brent for space in Gulf Coast refineries.
HLS, the heavy, sweet benchmark on the Gulf Coast, weakened by 40 cents to $11.35 a barrel more than WTI in Cushing, Oklahoma, at 12:01 p.m. East Coast time, data compiled by Bloomberg show. It’s the smallest premium since Jan. 19, 2012.
Light Louisiana Sweet weakened by 10 cents to $11.75 a barrel more than the U.S. benchmark. Mars Blend, a medium-sour crude in the Gulf, widened its premium by 55 cents to $6.50.
Crude from the Poseidon formation in the Gulf strengthened by 60 cents to a premium of $6.15. The premium for crude from the Southern Green Canyon strengthened by 20 cents to $4.85 a barrel. Thunder Horse gained 60 cents to $9 a barrel above WTI.
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