Oils produced on the Gulf Coast weakened after domestic benchmark West Texas Intermediate trimmed its discount to Brent crude to the narrowest level since January 2012.
WTI sold for a $9.31-a-barrel discount to Brent based on settlement prices, according to data compiled by Bloomberg. When WTI strengthens versus Brent, it typically weakens the value of U.S. grades that compete with foreign crudes priced against the international benchmark.
The premiums for Light Louisiana Sweet and Heavy Louisiana Sweet over WTI both weakened by 15 cents to $11 a barrel and $11.25 a barrel, respectively, at 2:14 p.m. in New York, according to data compiled by Bloomberg.
Eugene Island crude and Bonito Sour weakened by 50 cents to $8.75 over WTI.
Poseidon’s premium weakened 5 cents to a $6.25 a barrel premium and Mars Blend also weakened 5 cents, to $6.75 a barrel over WTI. Southern Green Canyon strengthened 15 cents a barrel to a $5 premium.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, was unchanged at $9 a barrel over WTI.
Bakken was unchanged at a discount of $3.50 a barrel against WTI.