Oct. 31 (Bloomberg) -- The premiums for low-sulfur oil in the U.S. Gulf Coast to benchmark West Texas Intermediate weakened as WTI gained versus its European counterpart for the ninth time in eleven days.
The discount of WTI to Brent December contracts narrowed 30 cents to $16.29 at 2:32 p.m. in New York. The spread for prompt month contracts has narrowed 42 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 fell $1.25 to $17.75 a barrel at 3:39 p.m. in New York, according to data compiled by Bloomberg, while Light Louisiana Sweet decreased $1.15 to $18.25 above WTI.
The premium for Mars Blend fell 90 cents to $14 a barrel. Poseidon lost 85 cents to $13.90 a barrel over WTI.
Southern Green Canyon’s premium shrank $1.60 to $12.90 a barrel and West Texas Sour’s discount was unchanged at 75 cents. Thunder Horse dropped $1 to $16 above WTI.
The discount for Western Canada Select strengthened 25 cents to $11.50 a barrel.
Syncrude’s premium added 25 cents to $7.50 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
--Editors: Bill Banker, David Marino
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