Light Louisiana Sweet oil’s premium against West Texas Intermediate sank to a nine-month low as WTI’s discount to Brent crude neared $10 a barrel.
WTI’s discount to Brent narrowed for the fifth time in six days, to $10.70 a barrel from $10.88 yesterday at 2:34 p.m. New York time, based on June contracts. The spread is down from as much as $23.44 in February. When Brent drops versus WTI, it decreases the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Light Louisiana Sweet weakened by 40 cents a barrel to a premium of $13 over WTI at 12:14 p.m. New York time, according to data compiled by Bloomberg, the lowest level since July 5. Heavy Louisiana Sweet’s premium to WTI narrowed 20 cents to reach $13 as well, also a nine-month low.
Poseidon’s premium gained 10 cents to $6.85 a barrel. Southern Green Canyon strengthened 25 cents to a $5.75 premium. Mars Blend’s premium to WTI weakened by 10 cents to $7 a barrel.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, was unchanged at $9.60 a barrel.