Light Louisiana Sweet oil’s premium to West Texas Intermediate on the spot market narrowed to a 10-month low as Brent’s premium to WTI held near $11.
Brent’s premium over the U.S. benchmark has fallen by more than half since February as refinery turnarounds and disappointing economic data out of Europe and Asia have diminished demand. The European benchmark’s premium to WTI was $11.03 a barrel at 2:33 p.m. New York time, increasing for the first time in four days.
Gulf crudes like LLS compete with foreign oils priced against Brent for space in Gulf Coast refineries.
LLS, the light, sweet benchmark on the Gulf Coast, weakened by 50 cents to $11.85 a barrel more than WTI in Cushing, Oklahoma, at 2 p.m. East Coast time, according to data compiled by Bloomberg. It’s the smallest premium since June 14.
Heavy Louisiana Sweet weakened by 40 cents to $11.75 a barrel more than the U.S. benchmark. Mars Blend, a medium-sour crude in the Gulf, narrowed its premium by 55 cents to $5.95 a barrel, the lowest since January 2012.
Crude from the Poseidon formation in the Gulf weakened by 85 cents to a premium of $5.55. The premium for crude from the Southern Green Canyon fell by 60 cents to $4.65 a barrel. Thunder Horse narrowed 85 cents to $8.40 a barrel more than WTI.