Gulf Crude Oils Weaken Ahead of Seaway Expansion’s New SupplyEdward Welsch
Crude produced in the Gulf of Mexico weakened ahead of the expansion of the Seaway pipeline, which will increase the supply of competing crudes on the Gulf Coast.
Enterprise Products Partners LP and Enbridge Inc. plan to resume service on the 500-mile (805-kilometer) Seaway line at the 400,000-barrel-a-day rate late this week, Rick Rainey, a Houston-based spokesman, said in an e-mail Jan. 3.
Light Louisiana Sweet’s premium to WTI narrowed by 65 cents to $17.20 a barrel at 3:51 p.m. New York time, according to data compiled by Bloomberg. Heavy Louisiana Sweet also lost 55 cents to trade at $17.30 above WTI.
Sour Gulf crude grades also weakened. Mars Blend fell 15 cents to a $13.25 premium, while Southern Green Canyon dropped 25 cents to $13.50 above WTI. Thunder House slipped 50 cents to a $15.65 premium.
Canadian crude grades also weakened. Western Canada Select, a heavy crude grade mainly produced from oil-sands bitumen, fell 65 cents to a $37.15 discount, according to Net Energy Inc., a Calgary oil broker. Syncrude, a synthetic crude produced from bitumen, lost a 50-cent premium to trade at parity with WTI.