Crude drilled in the Gulf of Mexico weakened after the differential between U.S. and European benchmark oils narrowed.
Crude from the Southern Green Canyon in the Gulf weakened by 40 cents a barrel to a $3 premium versus West Texas Intermediate in Cushing, Oklahoma, at 1:50 p.m., according to data compiled by Bloomberg.
Southern Green Canyon is a medium-density, high-sulfur grade that travels through the Cameron Highway pipeline system to Nederland, Texas. The pipeline system transported 83,428 barrels of crude a day for the first seven months of 2013.
Southern Green and other Gulf oils that are delivered to the coast compete with waterborne foreign oil for space in U.S. refineries.
Foreign oils are priced against Brent, the European benchmark. Brent’s premium over WTI narrowed by 20 cents a barrel today to $14.53 based on February settlement prices.
Mars Blend narrowed by 30 cents a barrel to a $3.75 premium. Thunder Horse lost 60 cents to a premium of $5.90. Poseidon lost 35 cents to a premium of $2.90.
Light Louisiana Sweet oil weakened by 30 cents a barrel to a premium of $7 over WTI. Heavy Louisiana Sweet shrank 30 cents to $9.30 over WTI.