Mars Blend, a sour crude produced on the Gulf Coast, traded at a discount to West Texas Intermediate for the first time in more than two years as the spread between U.S. and global oils narrowed.
WTI’s discount to Brent, the European benchmark, was $4.52 a barrel today after falling to as little as $3.10. It was more than $23 in February.
Mars Blend dropped to a discount of 10 cents a barrel to WTI at 3:45 p.m. from a premium of $1 yesterday, according to data compiled by Bloomberg. The grade was last at a discount on Dec. 27, 2010. Mars and other Gulf crudes compete for space at U.S. refineries with foreign oils priced against Brent.
Poseidon weakened by $1.20 to a discount of 80 cents a barrel under WTI, and Southern Green weakened by $1.25 to $1 a barrel discount to WTI.
The premium to WTI for Light Louisiana Sweet narrowed by 35 cents to $6.35 a barrel. Heavy Louisiana Sweet weakened by $1.10 to $5.50 more than WTI. Thunder Horse lost 30 cents to a $3.50-a-barrel premium.
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