Bloomberg News

U.S. Gulf Sour Oil Premiums Weaken as Brent-WTI Gap Narrows

April 27, 2012

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.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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