Oct. 3 (Bloomberg) -- U.S. Gulf crude premiums strengthened after the discount for West Texas Intermediate versus Brent widened.
The gap between WTI and Brent November contracts increased 25 cents to $23.81 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.
The discount of WTI for November delivery to the December contract widened 9 cents to 22 cents after Enbridge Inc. shut its Ozark pipeline that transports oil from Cushing, Oklahoma, to Wood River, Illinois.
Heavy Louisiana Sweet’s premium to WTI widened 85 cents to $26.75 a barrel at 2:02 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium added 75 cents to $25.75.
Among sour, or high-sulfur, grades, the premium for Mars Blend added $1 to $23 a barrel while Poseidon strengthened 85 cents to $22.35 a barrel over WTI.
Southern Green Canyon’s premium widened $1.35 to $21.85 a barrel and West Texas Sour’s discount weakened 5 cents to 90 cents a barrel below WTI. Thunder Horse’s premium increased 75 cents to $26 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: Bill Banker, David Marino
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