Gulf Coast Crudes Weaken as U.S. Oil Supplies Reach 22-Year HighEdward Welsch
Gulf Coast crudes weakened on the spot market as U.S. oil supplies reached the highest level in 22 years and as the restart of a crude unit at the nation’s largest refinery was said to be delayed another week.
Inventories rose 2.71 million barrels to 388.6 million last week, the largest supply since 1990, the Energy Information Administration said today. Motiva Enterprises LLC’s 600,000-barrel-a-day plant in Port Arthur, Texas, will keep a crude unit shut for a week more after repairs ran behind schedule, said two people familiar with the matter.
Light Louisiana Sweet weakened 25 cents to a premium of $16.85 a barrel over benchmark West Texas Intermediate as of 2:04 p.m. New York time, according to data compiled by Bloomberg. The Mars Blend, Poseidon, Southern Green Canyon, and Thunder Horse grades each lost more than $1 a barrel relative to WTI. Heavy Louisiana Sweet bucked the trend, strengthening 75 cents to an $18 premium.
West Texas Sour strengthened 20 cents to a 15-cent discount to WTI, while Midland WTI gained 15 cents to trade at a 10-cent discount to the same grade delivered to the U.S. storage hub in Cushing, Oklahoma.
Oil from North Dakota’s Bakken formation delivered by pipeline to Clearbrook, Minnesota, weakened by 50 cents to trade at a $2 premium to WTI. The majority of Bakken oil is transported by rail.
In Canada, Western Canada Select heavy oil strengthened by 20 cents to a $14 discount, according to Calgary oil broker Net Energy Inc. The price of Syncrude, a light oil produced from oil-sands bitumen, weakened by 20 cents against WTI to a $9.80 premium, the broker said.