Light Louisiana Sweet Oil Strengthens as WTI-Brent Spread Widens
Light Louisiana Sweet strengthened relative to West Texas Intermediate after U.S. durable goods dropped more than forecast in July.
WTI’s discount to Brent, the European benchmark, widened to $4.81 a barrel as bookings for goods meant to last at least three years decreased 7.3 percent, the most since August 2012, the Commerce Department reported. The drop in durable-goods orders was bigger than the 4 percent decline forecast by economists surveyed by Bloomberg.
Gulf crudes compete with foreign oils priced against Brent for space in U.S. refineries.
LLS, the light, sweet benchmark on the U.S. Gulf Coast, strengthened by 20 cents to a $3.20-a-barrel premium to WTI at 3:34 p.m., according to data compiled by Bloomberg. Heavy Louisiana Sweet strengthened by 10 cents to a $3-a-barrel premium.
Mars Blend, a medium sour crude, weakened by 5 cents to a discount of $2.15 a barrel to WTI. Poseidon’s discount narrowed by 30 cents to $2.85 a barrel. Crude from the Southern Green Canyon strengthened by $1.25 to a discount of $1.50 a barrel. Thunder Horse was unchanged at a premium of $1 a barrel to WTI.
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