U.S. Gulf Coast sour crudes premiums weakened as the gap between West Texas Intermediate and Brent narrowed.
Brent crude’s premium over WTI, based on June futures prices, narrowed 53 cents to $14.84 a barrel at 1:41 p.m. in New York. When Brent falls versus WTI, it typically weakens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Mars Blend’s premium narrowed 15 cents to $10.60 at 2:04 p.m. New York time, according to data compiled by Bloomberg. Poseidon’s premium weakened 40 cents to $9.85, while Southern Green Canyon’s lost 25 cents to $9.50. The three grades are used in the Argus Sour Crude Index. Thunder Horse, a sour crude with lower sulfur content than the other three grades, fell 50 cents against WTI to a premium of $13.50.
Light Louisiana Sweet’s premium to WTI was unchanged at $16.60 a barrel. Heavy Louisiana Sweet’s premium widened 5 cents to a premium of $16.70.
Western Canada Select’s discount to WTI narrowed 15 cents to $15.85 a barrel. Syncrude’s discount strengthened 25 cents to $1.25 and Bakken oil’s discount was unchanged at $6.50.
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