Gulf Crudes Strengthen as African Oil Extends Premium to BrentDan Murtaugh
Light Louisiana Sweet on the spot market strengthened as West African crudes reached their highest premiums to the European benchmark in almost 18 months.
Nigerian Bonny Light on the spot market rose 20 cents to a premium of $3.85 a barrel to Dated Brent at 1:28 p.m. New York time, according to data compiled by Bloomberg. That’s the highest premium since Oct. 18, 2011.
LLS, the light, sweet benchmark on the Gulf Coast, competes with West African oils like Bonny Light for space in refineries. The U.S. Gulf Coast imported 237,000 barrels a day from Nigeria last year, compared to just 49,000 from Norway and the U.K., where Brent originates, according to the U.S. Energy Information Administration.
LLS strengthened by 45 cents to $14.50 a barrel more than West Texas Intermediate in Cushing, Oklahoma, at 2:17 p.m., according to data compiled by Bloomberg. Heavy Louisiana Sweet strengthened 75 cents to a premium of $14.70.
Mars Blend, a medium-sour crude from the Gulf, strengthened 5 cents to a premium of $8.80. Poseidon crude gained 20 cents to $8.60 over WTI.
The premium for Southern Green Canyon widened 10 cents to $7.50. Crude from the Thunder Horse play increased its premium by $1.10 to $12 a barrel.