Gulf Oil Premium at Seven-Month Low as Brent-WTI Spread Narrows
Light Louisiana Sweet on the spot market weakened to its smallest premium over the U.S. benchmark in more than seven months as the Brent-West Texas Intermediate differential narrowed.
Brent’s premium to WTI shrank to $10.87 at 1:19 p.m. in New York, the first time since June 25 it’s been less than $11 in intraday trading. LLS competes with foreign oils priced against Brent, the European benchmark, for space in U.S. Gulf Coast refineries.
LLS, the light, sweet benchmark on the Gulf Coast, weakened by 55 cents to a premium of $14.50 a barrel versus WTI at 11:55 a.m., according to data compiled by Bloomberg. It’s the smallest LLS premium since Aug. 28. Heavy Louisiana Sweet also weakened by 55 cents, to a $15-a-barrel premium to WTI.
Mars Blend, a medium sour Gulf crude, shrank by $1.65 to $8.85 a barrel over than WTI, the smallest premium since July 2. Crude from the Poseidon and Thunder Horse fields also weakened by $1.65 a barrel. Poseidon traded at $8.65 a barrel more than WTI, and Thunder Horse’s premium was $11.60.
Southern Green Canyon weakened by 75 cents to $7.85 a barrel more than the U.S. benchmark.
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