U.S. Gulf Coast crude premiums slumped after Enbridge Inc. and Enterprise (EPD:US) Products Partners LP said they plan to begin oil shipments on the reversed Seaway pipeline on about May 17.
The initial transit time will be about 15 days on the 150,000-barrel-a-day line, which is being reversed to transport oil from Cushing, Oklahoma, to the U.S. Gulf Coast, said Rick Rainey, a Houston-based spokesman for Enterprise. The line will require about 2.5 million barrels of oil to fill.
Light Louisiana Sweet’s (USCSLLSS) premium to West Texas Intermediate decreased 90 cents to $19.90 a barrel at 2:05 p.m. New York time, according to data compiled by Bloomberg. Heavy Louisiana Sweet (USCSHLSE) lost $2 to a premium of $20 a barrel.
Thunder Horse’s premium narrowed 85 cents to $17 a barrel over WTI, and Mars Blend (USCSMARS) lost $1.50 to a premium of $12.50. Poseidon’s premium decreased $1.05 to $11.35, while Southern Green Canyon’s narrowed $1.45 to $11.30.
Western Canada Select (USCSWCAS)’s discount was unchanged at $17.25 a barrel. Syncrude’s held at $1.75 a barrel. Bakken oil’s discount was unchanged at $7.50.
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