Gulf Coast Crudes Weaken During Low-Volume Rollover PeriodEdward Welsch
U.S. Gulf Coast crude oils weakened on the spot market on the last day of the rollover period, characterized by below-normal volume and erratic pricing.
Light Louisiana Sweet’s premium to benchmark West Texas Intermediate weakened by $1 to $8.25 a barrel as of 12:03 p.m. New York time, according to data compiled by Bloomberg.
Spot WTI for delivery at Cushing, Oklahoma, slid 1 cent to 30 cents below July WTI futures on the New York Mercantile Exchange. June futures expired May 21.
Today is the last of three days that physical-market traders have to close their books for the trading month.
The premiums of other Gulf coast oils also shrank. Heavy Louisiana Sweet lost $1.30 against WTI to $7.30, while Mars Blend slid 30 cents to $3.20. Thunder Horse weakened by 15 cents to $5.85 and Poseidon slipped 10 cents to $3.20.
In Canada, heavy oil prices strengthened in out-of-index trading. Western Canada Select, a heavy oil blend of oil-sands bitumen, gained 25 cents, narrowing its discount to WTI to $19.75 a barrel, according to data compiled by Bloomberg.
Most of the trading volume for June Canadian crude shipments occurred during index trading from May 1 to May 16, when the average price for next month’s delivery was set.