Gulf Crudes Strengthen as Volume Declines During Rollover PeriodEdward Welsch
Gulf Coast crude oils strengthened on the spot market during the three-day rollover period characterized by below-normal volume and erratic pricing.
Heavy Louisiana Sweet’s premium to benchmark West Texas Intermediate oil strengthened by 35 cents to $8.60 a barrel, according to data compiled by Bloomberg as of 2:01 p.m. New York time. Southern Green Canyon gained 40 cents a barrel to a $1.40 premium to WTI, while Poseidon’s premium gained 25 cents to $3.30. Light Louisiana Sweet oil bucked the trend, weakening 35 cents to $9.25 over WTI.
Spot WTI for delivery at Cushing, Oklahoma, was priced 25 cents below July WTI futures on the New York Mercantile Exchange. June futures expired May 21. Today is the second of three days that physical-market traders have to close their books for the trading month.
In Canada, heavy oil prices weakened in out-of-index trading. Western Canada Select fell 15 cents against WTI to a $19.75-a-barrel discount, according to Calgary oil broker Net Energy Inc.
Most of the trading volume for June Canadian crude shipments occurred from May 1 to May 16, when the average price for next month’s delivery was set.