Gulf Crudes Rise as Production Cut by BP Gas Plant WorkEliot Caroom
Gulf Coast crudes strengthened as work was reported to be starting at a gas-processing plant in Pascagoula, Mississippi, that handles offshore Gulf of Mexico production.
Thunder Horse gained 80 cents to a premium of $10 over domestic benchmark West Texas Intermediate at 2:47 p.m. according to data compiled by Bloomberg. Production of that crude and other Gulf Coast oils will be shut in, said James Flores, chairman and president of Plains Exploration & Production Co., on the company’s first quarter earnings call.
“We do have this unscheduled shut in of the BP gas plant at Pascagoula, Mississippi, for maintenance,” Flores said. “It’s shutting in a tremendous amount of oil production in the Gulf of Mexico, it’s shutting in Thunder Horse, Na Kika, Horn Mountain, Marlin, and so forth for 36 days.”
Light Louisiana Sweet strengthened by 30 cents to $11.30 a barrel over WTI at 2:47 p.m., according to data compiled by Bloomberg. Heavy Louisiana Sweet rose by 25 cents to $11.75 a barrel over WTI.
Eugene Island crude and Bonito Sour gained 35 cents each to $9.45 over WTI.
Poseidon’s premium strengthened 80 cents to a $7.50-a-barrel premium and Mars Blend gained 45 cents to $7.40 a barrel over WTI. Southern Green Canyon rose 40 cents a barrel to a $6.50 premium.
Bakken weakened $1.25 a barrel to a discount of $3.50 a barrel against WTI.