Gulf Crudes Weaken After Nigerian Cargoes Planned for LoadingDan Murtaugh
Light Louisiana Sweet and other Gulf of Mexico crudes weakened relative to West Texas Intermediate as a loading program showed four Nigerian Bonny crude cargoes will be loaded next month after none were originally scheduled.
The cargoes will be 950,000 barrels each, according to the program, which was obtained by Bloomberg News.
Brent, the European benchmark, saw its premium to WTI narrow by as much as $1.42 a barrel on the expected increase in foreign supply. Gulf of Mexico crudes compete with Bonny and other foreign oils priced against Brent for space in U.S. refineries.
LLS weakened by 65 cents to a $5.25-a-barrel premium to WTI at 11:52 a.m. New York time, according to data compiled by Bloomberg. Heavy Louisiana Sweet weakened 15 cents to a premium of $5.25 a barrel.
Mars Blend, a medium, sour crude, weakened by $1 to a discount of 65 cents a barrel. Poseidon weakened by $1.10 to a 90-cent discount. Southern Green Canyon crude’s discount widened by 90 cents to $1.75.
Bakken crude in Clearbrook, Minnesota, strengthened by 50 cents to a $4-a-barrel discount to WTI after Koch Pipeline Co. restarted a pipeline carrying oil from Clearbrook to two Minnesota refineries.
In Canada, Syncrude strengthened by 50 cents to a premium of $3.75 a barrel to WTI, according to Calgary-based energy broker Net Energy Inc.
Two plants in Alberta will be shut for work starting next month, reducing supplies. Royal Dutch Shell Plc’s 97,870 barrel-a-day Scotford refinery will close for most of September, a person familiar with the matter told Bloomberg on July 30. Husky Energy Inc.’s 82,000 barrel-a-day Lloydminster upgrader will shut for 45 days starting in early September, executives said on an earnings call last month.
Western Canada Select, a blend of heavy crudes, weakened by 10 cents to a $23-a-barrel discount to WTI, according to Net Energy.