Oct. 25 (Bloomberg) -- The premiums for U.S. Gulf Coast oils over West Texas Intermediate weakened after the U.S. benchmark strengthened for the third consecutive day relative to its European counterpart.
The discount of WTI to Brent December contracts narrowed $2.78 to $17.40 at 1:32 p.m. in New York. The spread for prompt month contracts has narrowed 38 percent since settling at a record of $27.88 a barrel Oct. 14.
When Brent decreases versus WTI, it weakens 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 lost $2.50 to $21 a barrel while Light Louisiana Sweet decreased $4 to $21.25 above the U.S. benchmark, according to data compiled by Bloomberg.
The premium for Mars Blend decreased $3.25 to $16.75 a barrel at 1:58 p.m. in New York, That’s the smallest premium since July 26. Poseidon lost $3.25 to $16.50 a barrel over WTI.
Southern Green Canyon’s premium shrank $3.25 to $15.75 a barrel and West Texas Sour’s discount widened 20 cents to 90 cents. Thunder Horse’s premium decreased $3.50 to $18.75 above the benchmark.
The discount for Western Canada Select was unchanged at $12 a barrel below the U.S. benchmark.
Syncrude’s premium to WTI was unchanged at $12 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
--Editors: Bill Banker, Margot Habiby
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