Louisiana Sweet Crudes Decline Amid Gulf Coast Refinery Glitches
Heavy and Light Louisiana Sweet crudes fell against the benchmark West Texas Intermediate on speculation demand for prompt delivery is light amid refinery upsets and maintenance.
Light Louisiana Sweet’s premium versus WTI slipped 20 cents to $1.05 a barrel and Heavy Louisiana Sweet dropped 15 cents to $1.50 over WTI at 3:47 p.m. in New York, according to data compiled by Bloomberg. It’s the second-to-last day for October delivery.
Upsets at plants including Valero Energy Corp.’s Memphis, Tennessee, and Marathon Petroleum Corp.’s Galveston, Texas, refineries may reduce demand while units are brought back online.
“Refiners are down, and you are seeing the cash crudes get a little bit heavier,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “They’re getting weighed down. There’s not a lot of demand for the crudes right now.”
Southern Green Canyon strengthened by 75 cents to a discount of $5.75 against WTI. Poseidon’s discount narrowed 45 cents to $3.80. Mars Blend strengthened 75 cents a barrel to a discount of $2.75 to the benchmark.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, gained 10 cents to a discount of 75 cents a barrel.
Bakken weakened by 50 cents to a discount of $7 a barrel against WTI.
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