Bloomberg News

U.S. Gulf Crude Premiums Strengthen After WTI-Brent Gap Widens

September 30, 2011

Sept. 30 (Bloomberg) -- U.S. Gulf crude premiums stengthened after the discount for West Texas Intermediate versus Brent widened the first time in six days.

The gap between WTI and Brent November contracts increased $1.63 to $23.44 a barrel in New York. The spread settled Sept. 6 at a record margin of $26.87.

When Brent increases versus WTI, it strengthens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.

Heavy Louisiana Sweet’s premium to WTI widened 65 cents to $25.90 a barrel at 1:50 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium added 90 cents to $25.

Among sour, or high-sulfur, grades, the premium for Mars Blend added $1 to $22 a barrel while Poseidon strengthened 65 cents to $21.50 a barrel over WTI.

Southern Green Canyon’s premium widened 50 cents to $20.50 a barrel and West Texas Sour’s discount narrowed 5 cents to 85 cents a barrel below WTI. Thunder Horse’s premium increased 50 cents to $25.25 above the benchmark.

The premium for Syncrude was unchanged at $7.75 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.

The discount for Western Canada Select was unchanged at $10.50 a barrel.

--Editors: David Marino, Richard Stubbe

-0- Sep/30/2011 18:52 GMT

-0- Sep/30/2011 18:58 GMT

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net -0- Sep/30/2011 18:35 GMT


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