The discount for West Texas Sour and West Texas Intermediate oil priced in Midland, Texas, narrowed against the U.S. benchmark West Texas Intermediate in Cushing, Oklahoma.
The grades have both strengthened the past two days after Sunoco Logistics Partners LP (SXL:US) said last week it would begin deliveries on a pipeline system that transports crude from West Texas to Houston.
The system begins in Colorado City, Texas, and extends about 460 miles (740 kilometers) southeast to Goodrich, Texas, where it intersects the southern portion of the company’s Kilgore line, which carries the oil south to Houston.
West Texas Sour (USCSWTSM)’s discount narrowed $1.50 to $7 below WTI at 12:11 p.m. in New York, according to data compiled by Bloomberg. West Texas Intermediate at Midland also strengthened $1.50 to a $7 discount.
Light Louisiana Sweet’s (USCSLLSS) premium narrowed 85 cents to $20.25 a barrel over WTI. Heavy Louisiana Sweet (USCSHLSE) decreased $1.25 to a premium of $21 a barrel.
Thunder Horse’s premium narrowed $2.20 to $16 a barrel over WTI, and Mars Blend (USCSMARS) lost 85 cents to a premium of $13. Poseidon’s premium narrowed 95 cents to $11.75, while Southern Green Canyon’s lost $1.40 to $12.
Western Canada Select (USCSWCAS)’s discount narrowed $1.40 to $19.50 a barrel, Bakken oil’s narrowed $2 to $9 and Syncrude’s narrowed 10 cents to $2.80.
To contact the reporter on this story: Aaron Clark in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com