U.S. Gulf Coast oils weakened after the premium for Brent crude over West Texas Intermediate narrowed.
The gap between Brent and WTI, based on July futures prices, narrowed $1.32 to $13.19 a barrel at 2:35 p.m. in New York. When Brent falls versus WTI, it typically decreases the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Light Louisiana Sweet’s premium lost 35 cents to $11.80 a barrel at 2:10 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet decreased 70 cents to $12 over WTI. Poseidon’s premium to WTI sank 25 cents to $8 a barrel, while Southern Green Canyon’s increased 40 cents to $7.50.
Mars Blend’s premium narrowed 20 cents to $9.10 a barrel. Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, lost 30 cents to $10.90 a barrel over WTI.
Western Canada Select’s discount to WTI narrowed $1.35 to $22.25 a barrel. Syncrude’s discount narrowed $2.65 to $3.10. Bakken oil’s discount narrowed 50 cents a barrel to $8.50.