Nov. 17 (Bloomberg) -- The premiums for Light Louisiana Sweet and Heavy Louisiana Sweet oils weakened as West Texas Intermediate crude’s discount to Brent remained near an eight- month low.
The January WTI-Brent spread widened 1 cent to settle at $9.29 a barrel. The gap for the contracts nearest to expiration has narrowed by more than half since reaching 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.
Light Louisiana Sweet’s premium above WTI fell 50 cents to $11.50 a barrel at 4:16 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium decreased 75 cents to $12 above WTI.
Thunder Horse’s premium widened $2.30 to $11.30 above WTI. The premium for Mars Blend added 75 cents to $7.75 a barrel. Poseidon strengthened $1.10 to $8.20 a barrel over WTI.
Southern Green Canyon’s premium increased $1.40 to $7.65 a barrel and West Texas Sour’s discount was unchanged at 80 cents.
The discount for Western Canada Select widened 70 cents to $12.35 a barrel.
Syncrude’s premium slipped 25 cents to $5.25 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
--Editors: David Marino, Bill Banker
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