Thunder Horse Weakens to Two-Year Low as WTI Gains on Brent

Thunder Horse and other Gulf Coast crudes traded at the smallest premiums to benchmark West Texas Intermediate in more than two years, following gains by WTI against Brent oil.

Brent’s premium to WTI shrank to $7.37 a barrel at 2:45 p.m. in New York, according to data compiled by Bloomberg. When WTI strengthens against Brent, it often weakens the value of U.S. grades that compete with foreign crudes priced against the international benchmark.

“With WTI-Brent and also with these spreads, you’ve got to look at historicals,” said Andrew Lebow, a senior vice president at Jefferies Bache LLC in New York. “You’re getting back into levels that we’ve seen throughout this decade, at last.”

The premium for Thunder Horse, which has a lower sulfur content than other Gulf crudes like Mars, Poseidon and Southern Green Canyon, declined 50 cents a barrel to $4.90 over WTI at 1:54 p.m.

The premiums for Light Louisiana Sweet and Heavy Louisiana Sweet over WTI fell by 25 cents and 35 cents, respectively, to $8 a barrel.

Eugene Island crude’s premium narrowed by 30 cents to $4.65 a barrel over WTI, and Bonito Sour weakened by 45 cents to $4.75 over WTI.

Poseidon’s premium shrank 35 cents to $1.30 a barrel, and Mars Blend weakened 40 cents, to $2 a barrel over WTI. Southern Green Canyon fell 40 cents a barrel to a $1 premium.

Bakken fell 25 cents a barrel to a premium of $2 against WTI.

To contact the reporter on this story: Eliot Caroom in New York at ecaroom@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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.