Light Louisiana Sweet Oil Weakens After WTI-Brent Spread NarrowsDan Murtaugh
Light Louisiana Sweet and other Gulf of Mexico crudes weakened amid heavy refinery maintenance in the Gulf Coast region and as the WTI-Brent spread narrowed for the first time in six days.
LLS, the light, sweet benchmark on the Gulf Coast, weakened by 70 cents to a premium of $2.50 a barrel more than WTI at 3:59 p.m., according to data compiled by Bloomberg.
The grade weakened as Brent, the European benchmark, narrowed its premium to WTI. LLS and other Gulf crudes compete with foreign oils prices against Brent for space in coastal refineries.
WTI’s discount to Brent narrowed by 63 cents to $8.63 a barrel on optimism that a deal will be reached to lift the U.S. debt ceiling.
LLS also weakened as refineries in Louisiana and Texas with a combined capacity of 2.3 million barrels a day are undergoing maintenance during October, according to data compiled by Bloomberg.
Heavy Louisiana Sweet oil weakened by 40 cents to a premium of $2.60 a barrel. Thunder Horse crude weakened by $1 to a 50-cent premium.
Mars Blend weakened by 80 cents to a discount of $2.50 a barrel. Poseidon crude weakened by $1.05 to a discount of $3.35. Southern Green Canyon weakened by $1 to $5.50 a barrel less than WTI.