U.S. Gulf crude premiums stengthened after the discount for West Texas Intermediate versus Brent widened the first time in six days.
The gap between WTI and Brent November contracts increased $1.63 to $23.44 a barrel in New York. The spread settled Sept. 6 at a record margin of $26.87.
When Brent increases versus WTI, it strengthens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Heavy Louisiana Sweet’s premium to WTI widened 65 cents to $25.90 a barrel at 1:50 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium added 90 cents to $25.
Among sour, or high-sulfur, grades, the premium for Mars Blend added $1 to $22 a barrel while Poseidon strengthened 65 cents to $21.50 a barrel over WTI.
Southern Green Canyon’s premium widened 50 cents to $20.50 a barrel and West Texas Sour’s discount narrowed 5 cents to 85 cents a barrel below WTI. Thunder Horse’s premium increased 50 cents to $25.25 above the benchmark.
The premium for Syncrude was unchanged at $7.75 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
The discount for Western Canada Select was unchanged at $10.50 a barrel.