Thunder Horse crude advanced to the highest level versus West Texas Intermediate in seven months as the domestic benchmark weakened against Brent.
Gulf Coast crudes strengthened as WTI lost ground to Brent, the discount widening by 42 cents a barrel to $14.53 based on today’s settlement prices. The gap narrowed after Iran and six world powers agreed on a nuclear deal. When WTI weakens versus the international benchmark, it can raise the value of domestic grades competing for space in Gulf Coast refineries.
Thunder Horse advanced $1.85 against WTI to a premium of $7.75 a barrel at 1:55 p.m. in New York, the biggest premium since June 5, according to data compiled by Bloomberg. Mars Blend, a medium-sour grade, climbed by $1 to a premium of $4.75.
Poseidon gained 85 cents to a $3.75 premium. Southern Green Canyon’s premium narrowed by 15 cents to $2.85 a barrel.
Light Louisiana Sweet crude increased $1.10 to a premium of $8.10. Heavy Louisiana Sweet’s premium rose by 35 cents a barrel to $9.65.
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