Mars Blend Weakens as Gulf Coast Refineries Reduce Crude RunsDan Murtaugh
Mars Blend and other sour Gulf crudes weakened relative to West Texas Intermediate as U.S. Gulf Coast refineries reduced crude consumption to the lowest level in more than a month.
Crude runs in PADD 3 fell by 42,000 barrels to 8.34 million barrels a day in the week ended Aug. 2, the U.S. Energy Information Administration reported today. It was the lowest level since June 21.
Mars Blend, a medium-sour crude from the Gulf of Mexico, weakened by 30 cents to a premium of 25 cents a barrel compared with WTI in Cushing, Oklahoma, at 2:01 p.m. New York time.
Mars Blend is a combination of crudes from Royal Dutch Shell Plc’s Ursa, Mensa and Mars platforms, along with crude from the Amberjack pipeline. Shell delivered 289,562 barrels a day in March to Louisiana Offshore Oil Port LLC’s storage facility in Clovelly, Louisiana, according to its website.
Poseidon crude weakened by 40 cents to a discount of 10 cents a barrel to WTI. Crude from the Southern Green Canyon weakened by 40 cents to a 60-cents discount. Heavy Louisiana Sweet weakened by 10 cents to $4.90 a barrel more than WTI.
Light Louisiana Sweet, the light, sweet benchmark on the Gulf, strengthened by 5 cents to a $5.45-a-barrel premium to WTI. Thunder Horse, a medium, sweet crude, was unchanged at a $3-a-barrel premium.