Bloomberg News

U.S. Gulf Oil Premiums Strengthen as WTI-Brent Spread Widens

January 12, 2012

Jan. 12 (Bloomberg) -- U.S. Gulf Coast oil premiums widened as West Texas Intermediate’s discount to Brent, the European benchmark, widened for a second day.

The spread widened 79 cents to $12.16 a barrel based on settlement prices. 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.

Among Gulf Coast grades, Light Louisiana Sweet’s premium to WTI added 20 cents to $10.95 a barrel at 3:15 p.m. in New York. Heavy Louisiana Sweet’s premium gained 50 cents to $12.75 over the U.S. benchmark.

Thunder Horse’s premium narrowed 25 cents to $10.75. Mars Blend’s premium narrowed 25 cents to $8.25. Poseidon’s premium was unchanged at $8 a barrel.

Southern Green Canyon added 15 cents to $7.90 over WTI. West Texas Sour’s discount narrowed 40 cents to $3.10 a barrel.

Western Canada Select’s discount to WTI widened 50 cents to $21.50.

Syncrude’s discount widened 35 cents to $3.25. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.

--Editors: Richard Stubbe, Bill Banker

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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