Light Louisiana Sweet oil weakened to its lowest level relative to West Texas Intermediate in 41 months as concern faded that the U.S. will attack Syria over its alleged use of chemical weapons.
LLS, the light, sweet benchmark crude on the Gulf Coast, weakened by $1.10 to a premium of $1.65 a barrel to WTI at 4:01 p.m., according to data compiled by Bloomberg. It’s the smallest differential since April 6, 2010.
Russia said it urged its ally Syria to give up chemical weapons to avoid a U.S. strike. Jay Carney, a White House spokesman, said Russia’s proposal was under review. Congress is set this week to consider President Barack Obama’s call for a limited attack on Syria.
Waterborne crudes, led by European benchmark Brent, weakened versus land-locked WTI as concerns of supply disruptions faded. Brent’s premium to WTI narrowed to $4.20, the lowest level since Aug. 19.
LLS and other Gulf of Mexico crudes compete with foreign oils priced against Brent for space in U.S. refineries. Heavy Louisiana Sweet narrowed by $1.20 to a premium of $2.40 a barrel versus WTI. Mars Blend weakened by 75 cents to a discount of $2 a barrel.
Poseidon crude’s discount widened by $1.20 to $2.70. Crude from the Southern Green Canyon lost $2.50 to a $4.50-a-barrel discount. Thunder Horse crude weakened by $1.10 to 10 cents a barrel more than WTI.