Light Louisiana Sweet, the benchmark light, sweet crude on the Gulf Coast, weakened for the eighth day in a row, the longest losing run to domestic benchmark West Texas Intermediate since November 2011, as WTI gained on Brent.
Brent’s premium to WTI narrowed by 21 cents to $4.29 a barrel, based on ICE Futures Europe and New York Mercantile Exchange settlement prices.
The Brent-WTI spread grew in recent years because of booming domestic shale production that tripled inventories in Cushing, Oklahoma, the delivery point for WTI futures. Since Feb. 8, the spread narrowed from $23.18 as new pipelines drew crude from Cushing. It fell below $5 this month after BP Plc’s Whiting, Indiana, refinery restarted its largest crude unit.
LLS, which competes with foreign oils priced against Brent, fell 45 cents to a $5.85-a-barrel premium over WTI today, its lowest level since Jan. 3, 2011. Heavy Louisiana Sweet’s premium fell 75 cents to $5.35 a barrel.
Thunder Horse weakened by 5 cents to $3.25 a barrel more than WTI. Poseidon, a medium sour grade, weakened by 55 cents to a $1.30 discount to WTI.
Mars Blend’s premium fell by 15 cents to 20 cents a barrel more than WTI. Crude from the Southern Green Canyon gained 15 cents to a discount of 75 cents to WTI.