Gulf Crudes Weaken After Shell Repairs Offshore Oil PipelineDan Murtaugh
Crudes on the U.S. Gulf Coast weakened after Royal Dutch Shell Plc returned an offshore oil pipeline to normal operations after repairs.
Bonito Sour weakened by $2.75 a barrel to a premium of $7.75 over U.S. benchmark West Texas Intermediate at 1:49 p.m., according to data compiled by Bloomberg.
Royal Dutch Shell Plc returned to normal operations the Ship Shoal 22-inch pipeline between the No. 28 pump station and Gibson terminal in Louisiana, Destin Singleton, a company spokeswoman based in Houston, said by e-mail. The system can carry 390,000 barrels of oil a day into St. James, Louisiana.
Shell shut the pipeline, which along with Auger makes up the Bonito Sour stream, on Dec. 18, Kayla Macke, another company spokeswoman based in Houston, said by e-mail yesterday.
Mars Blend weakened by $2.50 a barrel to $5.50 more than WTI. Thunder Horse lost $5 to a $7,50 premium. Poseidon crude weakened $2.50 to $4.75 more than WTI, and Southern Green Canyon lost $3.50 to a $4.50 premium.
Light Louisiana Sweet, the light, sweet benchmark on the Gulf Coast, weakened by 40 cents to a premium of $10.60 a barrel over WTI. Heavy Louisiana Sweet strengthened by 35 cents to a $12.60 premium.