Heavy Louisiana Sweet Strengthens as Brent-WTI Discount Widens
Heavy Louisiana Sweet oil strengthened to the largest premium against futures in five months as the gap between the U.S. benchmark and London-traded Brent crude widened.
The discount of November West Texas Intermediate widened 29 cents to $17.54 a barrel. 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 West Texas Intermediate widened $2 a barrel to $20.25 at 4:01 p.m. in New York, according to data compiled by Bloomberg. That’s the largest premium for the grade since April 13.
Light Louisiana Sweet’s premium to the U.S. benchmark added $1.15 to $19.15 a barrel.
Poseidon’s premium narrowed 25 cents to $12.25. Mars Blend weakened 50 cents to $12.25 a barrel over WTI and Southern Green Canyon lost 60 cents to a premium of $10.90.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, lost 25 cents to $16.50 above WTI.
In Canada, Syncrude’s premium to WTI was steady at $13.50 a barrel.
Western Canada Select’s discount was steady at $8.50 a barrel below the U.S. benchmark. Bakken’s premium was unchanged at $4.25 a barrel.
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