Spot U.S. Gulf crudes weakened against futures as the spread between U.S. and European benchmark crudes narrowed to the least in almost nine months.
Brent’s premium to West Texas Intermediate narrowed to as little as $12.48 a barrel, the smallest intraday level since July 5. Gulf crudes compete for space in U.S. Gulf Coast refineries with foreign oils priced against Brent.
Light Louisiana Sweet’s premium to WTI fell 50 cents to $15.75 a barrel at 2:07 p.m. New York time, according to data compiled by Bloomberg. LLS is the light, sweet benchmark on the Gulf Coast.
Heavy Louisiana Sweet weakened 50 cents to a premium of $16.75. HLS averaged a 59-cent-a-barrel premium over LLS in March, the highest for any month since June.
Mars Blend was unchanged at a premium of $11.75 a barrel against WTI. Poseidon crude weakened by 15 cents to an $11.50-a-barrel premium.
Southern Green Canyon weakened 25 cents to a premium of $10 a barrel. Thunder Horse weakened by 30 cents to $14 a barrel more than the U.S. benchmark.
In Canada, Syncrude strengthened by $1 to an $8.25-a-barrel premium to WTI. Western Canada Select, a blend of heavy crude from Alberta, narrowed its discount by 90 cents, to $14.35 a barrel below WTI.