Dec. 29 (Bloomberg) -- The premium for Light Louisiana Sweet crude in the U.S. Gulf Coast compared to West Texas Intermediate strengthened as the gap between Brent and the U.S. benchmark widened for the second session.
The spread between the two benchmark crude futures for February delivery increased 16 cents to settle at $8.36 a barrel. The differential has narrowed 70 percent since reaching a record of $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.
Light Louisiana Sweet’s premium to WTI gained 40 cents to $9 a barrel at 2:35 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet increased 60 cents to $9.50 over the U.S. benchmark.
Thunder Horse’s premium to WTI added 5 cents to $6.55. The premium for Mars Blend gained 5 cents to $5.20. Poseidon’s premium was unchanged at $4.90.
Southern Green Canyon’s premium decreased 15 cents to $3.85. West Texas Sour’s discount was unchanged at $1.25.
The discount for Western Canada Select narrowed 20 cents to $16.15 a barrel.
Syncrude’s premium added 50 cents to $3.05 a barrel. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
--Editors: Richard Stubbe, Margot Habiby
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