Light Louisiana Sweet Weakens as Brent-WTI Differential NarrowsDan Murtaugh
Light crude in the U.S. Gulf of Mexico weakened on the spot market as Brent’s premium to West Texas Intermediate shrunk after the Buzzard oil field in the North Sea returned to full production.
Buzzard production returned to approximately full pumping rates over the weekend, two people with knowledge of the matter said. The oil field is now pumping about 208,000 barrels a day, said the people, who asked not to be identified because the information is confidential.
Buzzard is the largest contributor to the Forties crude grade, which typically sets the price of the Dated Brent benchmark. The Brent-WTI spread narrowed 35 cents to $8.18 a barrel. U.S. Gulf Coast crudes compete against foreign oils priced against Brent for space in coastal refineries.
Light Louisiana Sweet, the benchmark light oil on the Gulf, weakened by 25 cents to a $9.25-a-barrel premium to WTI in Cushing, Oklahoma, at 2:06 p.m., according to data compiled by Bloomberg. Mars Blend, a medium sour crude from the Gulf, also weakened by 25 cents to a $4.25-a-barrel premium to WTI.
Heavy Louisiana Sweet strengthened by 15 cents to $9.75 a barrel more than WTI. Crude from the Southern Green Canyon strengthened 10 cents to a $2.50-a-barrel premium.