Bloomberg News

U.S. Gulf Crude Premiums Little Changed as WTI-Brent Gap Steady

October 10, 2011

Oct. 10 (Bloomberg) -- U.S. Gulf crude premiums increased as the discount for West Texas Intermediate versus Brent widened.

The gap between WTI and Brent November contracts increased 38 cents to $23.28 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 85 cents to $27.25 a barrel at 2:01 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet gained 25 cents to $26.75.

Among sour, or high-sulfur, grades, the premium for Mars Blend grew 20 cents to $23.20 a barrel while Poseidon strengthened 35 cents to $22.75 a barrel over WTI.

Southern Green Canyon’s premium increased 75 cents to $21.75 a barrel and West Texas Sour’s discount was unchanged at 80 cents a barrel below WTI. Thunder Horse’s premium increased 50 cents to $26.10 above the benchmark.

The premium for Syncrude slipped 5 cents to $8.80 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.

The discount for Western Canada Select increased 90 cents to $10.80 a barrel.

--Editors: David Marino, Charlotte Porter

-0- Oct/10/2011 18:00 GMT

-0- Oct/10/2011 18:08 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- Oct/10/2011 17:45 GMT


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