U.S. Gulf Coast crudes weakened as the discount for West Texas Intermediate versus Brent oil shrank for the second consecutive session.
The difference between the benchmarks narrowed 12 cents to $17.42 a barrel at 2:15 p.m. in New York based on September prices. When Brent rises at a slower pace than WTI, as it did today, that typically weakens the value of U.S. grades competing with foreign oils priced against the European benchmark.
Heavy Louisiana Sweet’s premium to the U.S. benchmark narrowed 10 cents to $17.25 a barrel at 12:07 p.m. in New York, according to data compiled by Bloomberg. Light Louisiana Sweet’s decreased 15 cents to $17.75.
Poseidon’s premium lost 60 cents to $12.20, while Southern Green Canyon’s decreased 25 cents to $11 a barrel over WTI. Mars Blend’s premium weakened 85 cents to $12.50.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, lost 75 cents to $16.
Syncrude was unchanged at parity with WTI. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.
Western Canada Select’s discount was steady at $18.75 below WTI. Bakken oil’s discount was unchanged at $4.50 a barrel.
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