Oct. 23 (Bloomberg) -- West Texas Sour crude strengthened the most in eight months relative to the U.S. benchmark grade as pipelines in the area boosted flows after maintenance.
WTS, a low-density, high-sulfur crude from the Permian Basin, gained $3.50 to a discount of $3.75 a barrel against West Texas Intermediate at 3:40 p.m. East Coast time, according to data compiled by Bloomberg. It’s the most the grade has strengthened in one day since Feb. 26.
Sunoco Logistics Partners LP increased flows on its Mid Valley Pipeline system to about 150,000 barrels a day on Oct. 18 after essentially shutting it for more than two days, according to Genscape Inc., a Louisville, Kentucky-based energy information provider. The pipeline carries crude to Samaria, Michigan, from Longview, Texas.
Magellan Midstream Partners LP ramped up rates to the full 225,000 barrels a day on its Longhorn Pipeline to Houston from western Texas, Amrita Sen, chief oil analyst for Energy Aspects Ltd. in London, said by phone, citing a trade report.
WTI in Midland strengthened by $3 to a discount of $3 a barrel relative to its counterpart in Cushing, Oklahoma. West Texas Sour is also priced in Midland.
“The fact that the planned maintenance work on the pipeline has finished and rates are increasing, that’s why Midland grades are getting a little stronger,” Sen said.
To contact the reporter on this story: Dan Murtaugh in Houston at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com