U.S. Gulf oil premiums strengthened as the difference between West Texas Intermediate and Brent widened.
The gap between the two benchmark crude futures for January delivery increased 61 cents to $9.97 a barrel. The spread has narrowed 64 percent since reaching a record of $27.88 a barrel Oct. 14.
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 widened 5 cents to $11.60 a barrel at 1:34 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium to WTI added 5 cents to $11.30 a barrel.
Thunder Horse’s premium to WTI increased 50 cents to $9.75. The premium for Mars Blend added 20 cents to $7.20 a barrel. Poseidon strengthened 45 cents to $6.75 a barrel over WTI.
Southern Green Canyon’s premium increased 45 cents to $6.75 a barrel and West Texas Sour’s discount was unchanged at 85 cents.
The discount for Western Canada Select widened 80 cents to $16.15.
Syncrude’s premium gained 10 cents to $2.55 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.