U.S. Gulf Coast oil premiums strengthened as the spread between West Texas Intermediate and Brent crudes widened.
Brent’s premium over WTI, based on May futures settlement prices, rose by 47 cents to $18.26 a barrel in New York. When Brent increases versus WTI, it boosts the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Light Louisiana Sweet’s (USCSLLSS) premium to WTI widened $1.15 to $24.25 a barrel over the U.S. benchmark at 2:12 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet (USCSHLSE)’s premium gained 80 cents to $23.25 a barrel.
Thunder Horse’s premium added $1 to $21 a barrel over WTI and Mars Blend (USCSMARS) increased 25 cents to a premium of $16. Poseidon’s premium added 15 cents to $14.60, while Southern Green Canyon’s premium was unchanged at $15.
West Texas Sour (USCSWTSM)’s discount was unchanged at $6.25 a barrel below WTI.
Western Canada Select (USCSWCAS)’s discount narrowed $2 to $28 a barrel. Bakken oil was unchanged at $15.50 a barrel under WTI, and Syncrude’s discount narrowed $1.75 to $7.50.
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