Oct. 20 (Bloomberg) -- The premiums for U.S. Gulf Coast oils strengthened as West Texas Intermediate crude’s discount to Brent oil widened the first time this week.
The gap between WTI and Brent December contracts widened $1.59 to $23.69 at settlement. The spread for prompt month contracts settled at a record $27.88 a barrel Oct. 14.
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 gained $2.40 to $28 a barrel while Light Louisiana Sweet added $3.20 to $29 above the U.S. benchmark.
Among sour, or high-sulfur, grades, the premium for Mars Blend increased $1.40 to $22.40 a barrel and Poseidon increased $1.65 to $21.15 a barrel over WTI.
Southern Green Canyon’s premium added $1.60 to $21.45 a barrel and West Texas Sour’s discount strengthened 5 cents to 70 cents a barrel. Thunder Horse’s premium increased $1.50 to $25 above the benchmark.
The discount for Western Canada Select widened 60 cents a barrel to $10.75 below the price for WTI.
Syncrude’s premium to WTI weakened 50 cents to $12.75 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
--Editor: Richard Stubbe
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