West Texas Sour Weakens to 8-Month Low Amid Refinery MaintenanceDan Murtaugh
West Texas Sour crude weakened to an eight-month low relative to the U.S. benchmark as refinery maintenance along the Gulf Coast reduced demand for Permian Basin oil.
WTS, a low-density, high-sulfur grade, fell $1 to a $8-a-barrel discount to West Texas Intermediate in Cushing, Oklahoma, at 4:11 p.m., according to data compiled by Bloomberg. It’s the largest discount since Jan. 25.
Phillips 66 is performing maintenance at its 146,000-barrel-a-day refinery in Borger, Texas, Rich Johnson, a Houston-based company spokesman, said in an e-mailed statement Oct. 18. The plant may be forced to keep a fluid catalytic cracker shut for at least two weeks for repairs, a person with knowledge of the situation said Oct. 18.
Flint Hills Resources LLC, Exxon Mobil Corp. and Motiva Enterprises LLC are among companies said to be planning work this month at Texas and Louisiana plants with a combined capacity to process more than 2.3 million barrels of crude a day.
West Texas Intermediate in Midland also weakened relative to its counterpart in Cushing, falling $1.25 to a discount of $6.75 a barrel.
WTS and WTI in Midland are both crudes from the Permian Basin, the largest oil field in the U.S.