Mars Blend Sinks to Three-Year Low as Refineries Ready for WorkEliot Caroom
Mars Blend fell to the lowest level in three years against domestic benchmark West Texas Intermediate on speculation unplanned outages and seasonal maintenance will reduce crude demand.
A 325,000-barrel-a-day crude unit remained shut at the nation’s largest refinery, Motiva Enterprises LLC’s Port Arthur, Texas, plant. Eight analysts surveyed by Bloomberg estimated the Energy Information Administration will report tomorrow a 0.2 percentage point drop in U.S. refinery utilization last week.
Mars Blend fell 55 cents to a discount of $2.70 a barrel versus WTI at 4:05 p.m. in New York, according to data compiled by Bloomberg. It’s the largest gap since Aug. 25, 2010.
Gross inputs at PADD 3 refineries, the Gulf Coast region, fell by an average of 7.8 percent in September for the past five years, according to data compiled by Bloomberg.
Southern Green Canyon weakened by $2.65 to a $4.15 a barrel discount to WTI and Poseidon weakened by $1.15 to a discount of $4 a barrel.
The premium for Light Louisiana Sweet narrowed by 40 cents to $2.80 a barrel. Heavy Louisiana Sweet weakened by 10 cents to $2.90 over WTI.