U.S. Gulf Coast oils weakened with the approach of the start of the planned Seaway pipeline reversal, which will move crude from Oklahoma to refineries in Texas.
Enbridge Inc. and Enterprise Products Partners LP plan to start shipments on the 150,000-barrel-a-day line about May 17, according to a filing with regulators last month. The influx of domestic oil supplies may weaken prices for Gulf Coast crudes that typically compete with West African oil priced against European benchmark Brent.
Light Louisiana Sweet’s premium to U.S. benchmark West Texas Intermediate lost 15 cents to $13.75 a barrel at 12:05 p.m. in New York, according to data compiled by Bloomberg. That’s the grade’s smallest margin since Feb. 1. LLS’s premium has dropped 43 percent from a high of $24 this year on March 23.
Heavy Louisiana Sweet’s premium increased 10 cents to $15.50. Mars Blend’s narrowed 30 cents to $10.50 a barrel and Poseidon’s lost 40 cents to $9.50. Southern Green Canyon decreased 35 cents to a premium of $9.50.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, decreased $2.75 against WTI to a premium of $12.25.
Western Canada Select’s discount to WTI narrowed $1 to $17.75 a barrel. Syncrude’s premium added 5 cents to $2.05.
Bakken oil’s discount to the U.S. benchmark widened 40 cents to $1.90 a barrel.