Eugene Island, Bonito Sour Crudes Weaken After Motiva OutageEliot Caroom
Two sour oils produced in the Gulf of Mexico weakened against domestic benchmark West Texas Intermediate on speculation that Motiva Enterprises LLC’s Convent refinery in Louisiana may shut a unit for a month following a fire.
The premiums for Eugene Island crude and Bonito Sour, which are delivered in St. James, Louisiana near Convent, narrowed 50 cents to 50 cents over WTI at 2:53 p.m. in New York, according to data compiled by Bloomberg.
“Sours obviously are coming down because we think Motiva’s going to pull back,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston.
The two sours are delivered through Royal Dutch Shell Plc pipelines. Shell is a joint owner of the Convent refinery, as well as the Motiva Port Arthur refinery in Texas, which also had a unit down.
The premium of Light Louisiana Sweet gained 10 cents on WTI to $3.50 a barrel, and the premium for Heavy Louisiana Sweet over WTI grew 5 cents to $3.25 a barrel.
Poseidon strengthened against WTI, narrowing its discount 55 cents to $3 a barrel, and Mars Blend strengthened 40 cents, to a $2 a barrel discount to WTI. Southern Green Canyon rose 50 cents a barrel to a $2.90 discount.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, rose 25 cents a barrel to $1.25 over WTI.