Bloomberg News

U.S. Gulf Coast Oils Strengthen Against WTI as Brent Gap Widens

February 22, 2012

Feb. 22 (Bloomberg) -- The premiums for Light Louisiana Sweet and Heavy Louisiana Sweet oils over the benchmark West Texas Intermediate widened as the difference between WTI and Brent increased.

Brent’s premium to WTI based on April futures contracts widened $1.29 to $16.70 a barrel. 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 added 75 cents to $18.25 a barrel as of 1:53 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet increased $1.25 to a premium of $19.75.

Thunder Horse’s premium to WTI narrowed 75 cents to $17.25 and Mars Blend’s decreased 30 cents to $13. Poseidon’s premium was unchanged at $12.60 a barrel. Southern Green Canyon’s premium added 50 cents to $14.50 over WTI.

West Texas Sour’s discount widened $1 to $5 a barrel. Syncrude oil’s discount narrowed $2.25 at $13.25. Western Canada Select was unchanged at a discount of $28.50. Bakken oil’s spread was unchanged at $13 a barrel below WTI.

--Editors: Richard Stubbe, Charlotte Porter

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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