Offshore Gulf Coast oils weakened against the benchmark West Texas Intermediate after declines in regional inventories and gross inputs at refineries.
Light Louisiana Sweet and other regional oils lost ground to WTI after gross inputs in PADD 3 fell by 256,000 barrels to 8.27 million barrels a day in the week ended Aug. 9, the U.S. Energy Information Administration reported today. It was the biggest drop since April 19. Crude stockpiles in the region fell to the lowest level since February.
“It’s a combination of the (inventory) report, and we’re also looking at throughputs falling,” said Stephen Schork, the president of Schork Group Inc. in Villanova, Pennsylvania, by phone today. “We’re over the hump on peak refinery demand for the year.”
LLS fell by 55 cents a barrel to a premium of $5.10 to WTI at 4:01 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium dropped 75 cents to $4.45.
Poseidon fell 25 cents a barrel against WTI to a discount of $1.25. Mars Blend was unchanged at an 85-cent-a-barrel discount. Southern Green Canyon weakened by 15 cents to a discount of $2 a barrel.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, gained 10 cents to $2.10 a barrel.