Louisiana sweet crudes rebounded from four-month lows as the June scheduling period drew to a close.
The premium for Light Louisiana Sweet to benchmark West Texas Intermediate crude widened $1 to $11 a barrel at 3:23 p.m. New York time, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium increased 75 cents to $12.25.
“People are squaring up positions as we finish up scheduling for June,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Trading will be July when the market reopens May 29 after the Memorial Day holiday weekend.
The premiums of both Louisiana grades fell to their lowest levels since January as oil flowing to the Gulf from Cushing, Oklahoma, on the reversed Seaway pipeline signaled added supplies for area refiners.
Enbridge Inc. (ENB) and Enterprise Products Partners LP (EPD:US) started the 150,000-barrel-a-day pipeline May 19. It will take about 12 days for the oil to begin arriving in Houston, Rick Rainey, a Houston-based spokesman for Enterprise, said May 14.
Mars Blend’s premium widened 40 cents to $9.50. Poseidon’s premium narrowed $1 to $7. Southern Green’s premium shrunk $1 to $8. Thunder Horse’s premium narrowed $1 to $9.50.
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