Thunder Horse crude on the U.S. Gulf Coast rose the most in almost nine months against West Texas Intermediate as the domestic benchmark lost ground to Brent.
When Brent, which is used to price European and West African crudes, gains versus WTI, it can raise the value of domestic grades that compete with imports for space in Gulf Coast refineries.
“The grades are reacting to the widening Brent-WTI spread,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “It’s really being driven by the economic headlines overseas.”
Thunder Horse climbed $1.65 to a $1.40 premium to WTI from a 25-cent discount Nov. 29, according to data compiled by Bloomberg at 4:12 p.m. in New York. It was the grade’s biggest gain since March 14. WTI weakened against Brent by 66 cents to a discount of $17.63 a barrel, based on New York Mercantile Exchange and ICE Futures Europe settlement prices.
Heavy Louisiana Sweet’s premium to WTI rose 50 cents to $4.30 a barrel, while Light Louisiana Sweet gained 55 cents to a premium of $4. Mars Blend’s discount narrowed $1.60 to $1.50 a barrel.
Southern Green Canyon strengthened by $1.50 to a discount of $2.20 a barrel. Poseidon rose $1.70 to a discount of $2.30.