Gulf Crude Strengthens as Supplies Drop Most in Three MonthsDan Murtaugh
Light Louisiana Sweet oil strengthened as crude supplies on the Gulf Coast fell the most in three months.
LLS, the light, sweet benchmark on the Gulf Coast, strengthened by 35 cents to a premium of $4 a barrel above U.S. benchmark West Texas Intermediate at 3:56 p.m., according to data compiled by Bloomberg. It’s the highest level since Oct. 7.
Supplies on the Gulf Coast fell by 3.63 million barrels to 192.5 million last week, according to the Energy Information Administration. It was the largest drop in the region since the week ended Aug. 9.
The amount of crude processed by plants along the Gulf increased by 133,000 barrels a day to 8.07 million, the most since Sept. 13. Refineries in Baton Rouge and Lake Charles, Louisiana, have restarted in the past week following planned maintenance.
Heavy Louisiana Sweet strengthened by $1.10 to $4.50 a barrel over WTI. Thunder Horse gained 85 cents relative to WTI to a premium of $1.75.
Mars Blend weakened by 15 cents to a discount of $2.90 a barrel. Poseidon crude’s discount widened by 10 cents to $4.30 a barrel. Southern Green Canyon gained 75 cents to a $3.50 discount.