U.S. Gulf Coast crudes’ premiums to the benchmark West Texas Intermediate weakened as the gap between WTI and Brent narrowed.
Brent crude’s premium over WTI, based on June futures prices, decreased 99 cents to $14.61 a barrel in New York. When Brent falls versus WTI, it typically weakens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Mars Blend lost 50 cents against WTI to a premium of $11 at 2:03 p.m. New York time, according to data compiled by Bloomberg. Poseidon’s premium decreased 40 cents to $10, while Southern Green Canyon’s narrowed 75 cents to $9.50. The three grades are used in the Argus Sour Crude Index. Thunder Horse, a sour crude with lower sulfur content than the other three grades, added 50 cents to $14.70 a barrel over WTI.
Sweet oils also weakened against the benchmark. Light Louisiana Sweet’s premium to WTI lost 55 cents to $17.05 a barrel. Heavy Louisiana Sweet weakened 80 cents to a premium of $16.20 a barrel.
Western Canada Select’s discount to WTI was unchanged at $17 a barrel. Syncrude’s discount was steady at $1.50 and Bakken oil’s discount was unchanged at $6.50.