Gulf Crudes Strengthen After Storm Shuts in Some Offshore Output
Light Louisiana Sweet crude strengthened to the highest level in a month after Tropical Storm Karen shut in more than 2.9 million barrels of Gulf of Mexico crude production over the past four days.
LLS, the benchmark light, sweet oil on the Gulf Coast, gained 90 cents to a premium of $4 a barrel more than West Texas Intermediate at 3:49 p.m., according to data compiled by Bloomberg. It’s the highest level since Sept. 4.
BP Plc (BP/) and Anadarko Petroleum Corp. (APC) were among companies that evacuated workers and shut in oil and natural gas production from Gulf of Mexico platforms because of Tropical Storm Karen. About 491,000 barrels were still shut in today even as companies have started returning workers, according to the U.S. Bureau of Safety and Environmental Enforcement.
Heavy Louisiana Sweet oil strengthened by 75 cents to $3.75 a barrel more than WTI. Thunder Horse crude strengthened by 20 cents to a $1.20 premium.
Mars Blend, a medium, sour crude, strengthened by 20 cents to a discount of $1.65 a barrel. Poseidon crude narrowed its discount by 40 cents to $2.40. Southern Green Canyon crude strengthened by 30 cents to a $3.50 discount.
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