Oct. 6 (Bloomberg) -- U.S. Gulf crude premiums weakened after the discount for West Texas Intermediate versus Brent was little changed.
The gap between WTI and Brent November contracts increased 9 cents to settle at $23.14 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 narrowed 45 cents to $26.50 a barrel at 2:57 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s premium lost 35 cents to $26.
Among sour, or high-sulfur, grades, the premium for Mars Blend decreased 65 cents to $22.75 a barrel while Poseidon weakened 15 cents to $22.50 a barrel over WTI.
Southern Green Canyon’s premium narrowed 80 cents to $21.45 a barrel and West Texas Sour’s discount was unchanged at 90 cents a barrel below WTI. Thunder Horse’s premium decreased 65 cents to $26.10 above the benchmark.
The premium for Syncrude was unchanged at $10 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 $9.50 a barrel.
--Editors: David Marino, Charlotte Porter
-0- Oct/06/2011 19:36 GMT
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