Light Louisiana Sweet crude traded at the smallest premium to benchmark West Texas Intermediate in more than two years, tracking a parallel move in Brent oil.
Brent’s premium to WTI shrank to $7.44 a barrel, the least since Jan. 20, 2011, based on August settlement prices for both futures contracts. Light Louisiana Sweet traded at its lowest premium to WTI since the same date. When WTI strengthens against Brent, it often 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 each weakened by 65 cents to $8.25 a barrel and $8.35 a barrel, respectively, according to data compiled by Bloomberg at 1:44 p.m. in New York.
Eugene Island crude’s premium narrowed by 45 cents to $4.95 a barrel over WTI, and Bonito Sour weakened by 40 cents to $5.20 over WTI.
Poseidon’s premium shrank 50 cents to a $1.65 a barrel, and Mars Blend also weakened 50 cents, to $2.40 a barrel over WTI. Southern Green Canyon fell 60 cents a barrel to a $1.40 premium.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, fell 35 cents a barrel to $5.40 over WTI.
Bakken was unchanged at a premium of $2.25 a barrel against WTI.