West Texas Sour oil strengthened against West Texas Intermediate after Sunoco Logistics Partners LP said last week it would begin deliveries on a pipeline system that transports crude from West Texas to Houston.
The pipeline system begins in Colorado City, Texas, and extends about 460 miles (740 kilometers) southeast to Goodrich, Texas, where it intersects the southern portion of the company’s Kilgore line, which carries the oil south to Houston.
West Texas Sour’s discount narrowed the first time in 10 trading sessions. The grade strengthened 50 cents a barrel to $8.50 below West Texas Intermediate at 4:06 p.m. in New York, according to data compiled by Bloomberg. Yesterday the grade sank to the cheapest relative to WTI since Nov. 5, 2007.
West Texas Intermediate at Midland, Texas, compared to the same grade in Cushing, Oklahoma, also strengthened against WTI at Cushing for the first time in 10 sessions, gaining 50 cents to a discount of $8.50.
Light Louisiana Sweet’s premium lost 65 cents to $21.10 a barrel over WTI. Heavy Louisiana Sweet decreased $1.10 to $22.25 a barrel over.
Thunder Horse’s premium narrowed 30 cents to $18.20 a barrel over WTI, and Mars Blend lost $1.15 to a premium of $13.85. Poseidon’s premium narrowed 90 cents to $12.70, while Southern Green Canyon’s lost 85 cents to $13.40.
Western Canada Select’s discount narrowed $2.10 to $20.90 a barrel, Bakken oil’s was unchanged at $11 and Syncrude’s discount widened 10 cents to $2.90.