U.S. Gulf Oil Premiums Strengthen as WTI-Brent Spread Widens

U.S. Gulf oil premiums strengthened as the difference between West Texas Intermediate and Brent widened.

The gap between the two benchmark crude futures for January delivery increased 61 cents to $9.97 a barrel. The spread has narrowed 64 percent since reaching a record of $27.88 a barrel Oct. 14.

When Brent increases versus WTI, it strengthens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.

Heavy Louisiana Sweet’s premium widened 5 cents to $11.60 a barrel at 1:34 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium to WTI added 5 cents to $11.30 a barrel.

Thunder Horse’s premium to WTI increased 50 cents to $9.75. The premium for Mars Blend added 20 cents to $7.20 a barrel. Poseidon strengthened 45 cents to $6.75 a barrel over WTI.

Southern Green Canyon’s premium increased 45 cents to $6.75 a barrel and West Texas Sour’s discount was unchanged at 85 cents.

The discount for Western Canada Select widened 80 cents to $16.15.

Syncrude’s premium gained 10 cents to $2.55 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net