Light Louisiana Sweet and other U.S. Gulf of Mexico crudes strengthened relative to West Texas Intermediate as the rate of inventory decline eased at the Cushing, Oklahoma, hub.
Inventories in Cushing, the delivery point for WTI futures traded on the New York Mercantile Exchange, fell 3.29 million barrels in the three weeks ended Aug. 23, according to the Energy Information Administration, or 1.1 million barrels a week. In the five weeks before that, they dropped an average of 1.96 million a week.
Southern Green Canyon strengthened $1.30 to a $1.50 discount to WTI at 3:39 p.m. in New York, according to data compiled by Bloomberg. LLS strengthened 50 cents to a premium of $4 a barrel to WTI. Heavy Louisiana Sweet crude strengthened 25 cents to a premium of $4.50.
Thunder Horse gained 75 cents to $2.10 over WTI. Mars Blend, a high-sulfur Gulf crude, gained 60 cents to a discount of 40 cents. Poseidon’s discount narrowed 20 cents to $1.50.