Light Louisiana Sweet oil’s premium to the Mars Blend grade narrowed to the smallest since August before shipments of oil on the Seaway pipeline and on speculation of a release from the Strategic Petroleum Reserves.
Enterprise Products Partners LP and Enbridge Inc. will start moving oil on the Seaway pipeline from Cushing, Oklahoma, to Houston-area refineries this weekend, the companies said today. The U.S. has called on other Group of Eight nations to prepare to release strategic oil reserves because of the full implementation of the European Union’s ban on imports from Iran starting July, the Kyodo news service reported. The news agency cited unidentified officials familiar with Japan-U.S. ties.
Light Louisiana Sweet’s premium to Mars narrowed 20 cents to $1.15 a barrel at 2:10 p.m. in New York, according to data compiled by Bloomberg. That’s the smallest margin since Aug. 25. LLS’s premium to West Texas Intermediate weakened 35 cents to $12, the smallest since Jan. 31.
Heavy Louisiana Sweet’s premium to WTI decreased $1.50 to $14.50. Mars Blend’s narrowed 15 cents to $10.85 a barrel and Poseidon’s lost 40 cents to $9.60. Southern Green Canyon’s premium added 10 cents to $9.85.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, increased 80 cents against WTI to a premium of $13.55.
Western Canada Select’s discount to WTI widened 85 cents to $16.25 a barrel. Syncrude’s premium lost 10 cents to $1.90.
Bakken oil’s discount to the U.S. benchmark was unchanged at $2 a barrel.