Heavy Louisiana Sweet’s premium to domestic benchmark West Texas Intermediate strengthened as WTI traded about 25 cents lower against Brent crude.
HLS strengthened 15 cents to $4.15 a barrel above WTI in Cushing at 2:17 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet oil increased 5 cents against WTI to a premium of $4.95.
Gulf Coast oils have weakened over the past five months as the spread between overseas Brent oil and U.S. benchmark West Texas Intermediate diminished. The gap narrowed to $1.99 on July 10, the narrowest differential, based on closing prices, since November 2010. The spread was near $3 today.
Poseidon’s discount narrowed 35 cents to $1.70 a barrel under WTI. Thunder Horse strengthened 50 cents to premium of $2.10. Southern Green Canyon narrowed its discount by 25 cents to $1.90.