West Texas Intermediate crude in Midland, Texas, traded at a premium to the domestic benchmark grade for the third time this year as a pipeline carrying oil from the region increased flows.
WTI in Midland rose 15 cents a barrel to trade at a premium of 10 cents over WTI in Cushing, Oklahoma, at 2:04 p.m. in New York, according to data compiled by Bloomberg. Magellan Midstream Partners LP (MMP)’s Longhorn pipeline began shipments last month and Sunoco Logistics Partners LP (SXL) plans to start two projects carrying crude from west Texas in the second quarter.
The light, sweet oil flowing to the Gulf Coast from west Texas will compete with crude moving south from Cushing on the Seaway pipeline.
The premiums for Light Louisiana Sweet and Heavy Louisiana Sweet over WTI both strengthened by 40 cents to $11 and $11.50 a barrel, respectively.
Eugene Island crude and Bonito Sour both rose by 35 cents to $9.10 over WTI.
Poseidon’s premium grew by 90 cents to $6.70 a barrel and Mars Blend strengthened by 55 cents to $6.95 a barrel over WTI. Southern Green Canyon strengthened 65 cents a barrel to a $6.10 premium.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, weakened by 25 cents to $9.20 a barrel over WTI.
Bakken was unchanged at a discount of $2.25 a barrel against WTI.
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