Domestic Crude Oils Retreat as End Is Seen to Early-Year RallyEliot Caroom
Nine different U.S. crudes lost more than $1 a barrel relative to U.S. benchmark West Texas Intermediate.
On the Gulf Coast, Light Louisiana Sweet’s premium to WTI shrank $1.85 to $21.15 a barrel at 3:24 p.m. New York time while Heavy Louisiana Sweet’s premium was cut $1.10 a barrel to $22.15. The discount of WTI to Brent crude in London widened by 36 cents, according to exchange data compiled by Bloomberg.
“We’re down two bucks across the board here, everything from Bakken to light sweet to heavy sour,” Stephen Schork, the president of Schork Group Inc. in Villanova, Pennsylvania, said by phone. “The whole complex has turned the corner. It’s had a hell of a ride the first two months of this year.”
The premium for Mars Blend dropped $1.90 to $18.60 over WTI, while Thunder Horse slipped $1.15 to $20.25 a barrel over the benchmark. Poseidon’s premium to WTI lost $3.95 to $16.80 a barrel.
Bakken crude lost $1.75 a barrel to a discount of $2.50 a barrel to WTI.
Bitumen-based blend Western Canada Select crude narrowed its discount to WTI $1.50 to $24.50 a barrel, according to data compiled by Bloomberg. Syncrude, a synthetic light, sweet oil upgraded from bitumen, gained $1.50 a barrel to a $2.50 premium to WTI.
Pipeline nominations for domestic crude shipments end three trading days after the expiration of the Nymex futures contract, and the period is characterized by light volumes and volatile price changes.