Light Louisiana Sweet Oil Exceeds Heavy for First Time in Month
Light Louisiana Sweet oil’s premium versus U.S. benchmark West Texas Intermediate exceeded the premium for Heavy Louisiana Sweet crude for the first time in more than a month.
The heavy oil had been at a premium to the light grade since Nov. 7 after Exxon Mobil Corp. shut its Southwest System Pipeline in Louisiana “indefinitely” on Oct. 31. The Irving, Texas-based company closed the line after the U.S. Pipeline and Hazardous Materials Safety Administration rejected the company’s request to waive federal safety requirements.
The 12-inch pipeline runs from South Bend to Krotz Springs, Louisiana, and delivers the heavy oil to Exxon’s North Line system and its refinery in Baton Rouge, Louisiana, according to the company’s website.
Heavy Louisiana Sweet’s premium narrowed 60 cents to $11.30 a barrel at 12:50 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium to WTI widened 10 cents to $11.50 a barrel.
Thunder Horse’s premium to WTI decreased 10 cents to $8.75. The premium for Mars Blend narrowed 25 cents to $6.80 a barrel. Poseidon lost 15 cents to $6.30 a barrel over WTI.
The discount for Western Canada Select was unchanged at $15.35.
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