West Texas Sour oil weakened to the cheapest versus benchmark West Texas Intermediate in almost seven weeks because of decreased demand during refinery maintenance and growing production.
Work on a shut crude unit and reformer at Western Refining Inc.’s El Paso, Texas, refinery is expected to last about two weeks or less, Gary Hanson, a company spokesman, said yesterday. Eagle Ford production of oil and condensate has grown to average between 550,000 and 600,000 barrels a day, Phani Gadde, a senior analyst with Wood Mackenzie, a research and consulting firm in Houston, said in a telephone interview.
West Texas Sour’s discount to WTI widened 20 cents to $4 a barrel at 4:05 p.m. in New York, according to data compiled by Bloomberg. That’s the widest margin since July 6.
Light Louisiana Sweet’s premium to WTI widened $1.30 to $17.70. Heavy Louisiana Sweet rose 55 cents to $16.85 over WTI.
Poseidon’s premium increased 10 cents to $12.50. Mars Blend lost 20 cents to $12.30 a barrel over WTI. Southern Green Canyon’s premium widened by 65 cents to $11.90.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, slipped by 30 cents to a premium of $15.
Syncrude’s premium was unchanged at $8 above WTI. Bakken oil from North Dakota was steady at a $1 discount to WTI.
Western Canada Select’s discount was unchanged at $11.