U.S. Gulf Coast Crudes Strengthen as Brent-WTI Discount Widens
U.S. Gulf Coast crudes strengthened as the discount for West Texas Intermediate versus Brent oil widened to the largest gap in more than two months.
The difference between the two grades increased $1.72 to $18.77 a barrel based on September settlement prices, the widest spread since May 16. When Brent gains versus WTI, it typically strengthens the value of U.S. grades that compete with foreign oils priced against the European benchmark.
Heavy Louisiana Sweet’s premium to the U.S. benchmark widened $1 to $18 a barrel at 4:04 p.m. in New York, according to data compiled by Bloomberg.
Light Louisiana Sweet’s premium increased 75 cents to $19.
Poseidon’s premium added $1.05 to $13.45 and Southern Green Canyon increased 25 cents to $12.25 a barrel over WTI. Mars Blend gained $1 to $14.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, gained 75 cents to $16.50.
Syncrude’s discount to WTI narrowed 25 cents to $1.25 a barrel. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.
Western Canada Select’s discount narrowed $2.75 a barrel to $20 below WTI.
Bakken oil’s discount was unchanged at $4 a barrel.
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