U.S. Gulf Coast oil premiums weakened for a second day as the gap between West Texas Intermediate and Brent crude narrowed to the smallest margin since February.
The premium of Brent to WTI, the two global benchmarks, has been shrinking since Enbridge Inc. and Enterprise Products Partners LP said they plan to begin oil shipments on the reversed Seaway pipeline from Cushing, Oklahoma, to the Gulf Coast on about May 17.
Brent’s premium over WTI, based on June futures prices, narrowed $2.09 to $13.22 a barrel at 12:20 p.m. in New York, the smallest margin since Feb. 29. When Brent decreases versus WTI, it typically reduces 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 West Texas Intermediate decreased $1.30 to $18.10 a barrel at 11:48 a.m. New York time, according to data compiled by Bloomberg. Heavy Louisiana Sweet lost $2 to a premium of $18 a barrel.
Thunder Horse’s premium narrowed $3.20 to $14.30 a barrel over WTI, and Mars Blend lost $1.70 to a premium of $10.55. Poseidon’s premium decreased $1.60 to $9.55, while Southern Green Canyon’s narrowed $1.50 to $10.
Western Canada Select’s discount narrowed 35 cents to $17 a barrel. Syncrude’s discount widened 25 cents to $2 a barrel. Bakken oil’s discount was unchanged at $7.
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