Bloomberg News

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

October 12, 2011

Oct. 12 (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 83 cents to $25.75 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 $1.15 to $29.50 a barrel at 12:13 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet gained $1.20 to $29.25.

Among sour, or high-sulfur, grades, the premium for Mars Blend grew 80 cents to $24.90 a barrel while Poseidon strengthened $1.35 to $25 a barrel over WTI.

Southern Green Canyon’s premium increased 50 cents to $23.50 a barrel and West Texas Sour’s discount was unchanged at 70 cents a barrel. Thunder Horse’s premium increased 75 cents to $27.25 above the benchmark.

The premium for Syncrude was unchanged at $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 was unchanged at $10 a barrel.

--Editors: David Marino, Richard Stubbe

-0- Oct/12/2011 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/12/2011 17:31 GMT


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