U.S. Gulf Coast crudes weakened as the discount for West Texas Intermediate versus Brent oil narrowed the first time in eight days.
The difference between the grades narrowed $1.23 to $17.54 a barrel based on September settlement prices. When Brent rises at a slower pace than WTI, as it did today, that typically weakens the value of U.S. grades that compete with foreign oils priced against the European benchmark.
Heavy Louisiana Sweet’s premium to the U.S. benchmark narrowed 65 cents to $17.35 a barrel at 4:02 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s decreased $1.10 to $17.90.
Poseidon’s premium lost 65 cents to $12.80, while Southern Green Canyon decreased $1 to $11.25 a barrel over WTI. Mars Blend’s premium weakened 65 cents to $13.35.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, gained 25 cents to $16.75.
Syncrude strengthened $1.25 to parity with WTI. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.
Western Canada Select’s discount narrowed $1.25 a barrel to $18.75 below WTI. Bakken oil’s discount weakened 50 cents to $4.50 a barrel.
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