U.S. Gulf Coast crude premiums plunged a day after Nigerian Bonny Light oil weakened to the lowest level versus Light Louisiana Sweet since March, boosting the appeal of sending cargoes from West Africa to the U.S.
Bonny Light sank to $2.61 a barrel below the U.S. Gulf Coast benchmark grade yesterday, the largest discount since March 23, according to data compiled by Bloomberg. Bonny Light competes with domestic light, sweet, crude grades, such as LLS.
Light Louisiana Sweet’s premium to West Texas Intermediate decreased $1.75 today to $16.10 a barrel at 2:14 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet lost $1.80 to $15.45 over.
Poseidon’s premium decreased $2.35 to $10.55 a barrel, while Southern Green Canyon lost $3 to $9.10 over WTI. Mars Blend decreased $2.30 to $10.80 a barrel over the U.S. benchmark.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, decreased $1.50 to a $14.50 premium.
Syncrude strengthened 50 cents to a $3 premium to WTI. Syncrude is a synthetic oil upgraded from tarlike bitumen in Alberta into refinery-ready crude.
Western Canada Select’s discount widened $2.80 to $16.55 a barrel below WTI.
Bakken oil’s discount was steady at 50 cents below the U.S. benchmark.
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