U.S. Gulf Crude Premiums Strengthen as Brent-WTI Spread Widens
U.S. Gulf Coast oil premiums strengthened after the premium for Brent over West Texas Intermediate widened.
Brent crude’s premium to WTI, based on July futures prices, widened 53 cents to $14.25 a barrel at 1:33 p.m. in New York. When Brent rises versus WTI, it typically strengthens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Light Louisiana Sweet’s premium was unchanged at $11.75 a barrel at 2:07 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium increased 50 cents to $12.75.
Poseidon’s premium to West Texas Intermediate added 60 cents to $8 a barrel. Southern Green Canyon’s premium also increased $1 to $7.50.
Mars Blend’s premium widened 55 cents to $9.30 a barrel. The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, added 20 cents to $11.15 a barrel.
Western Canada Select’s discount to WTI narrowed 75 cents to $23.60 a barrel. Syncrude’s discount narrowed 55 cents to $5.75. Bakken oil’s discount narrowed $1.50 a barrel to $9.
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