Light Louisiana Sweet and Heavy Louisiana Sweet oils from the U.S. Gulf of Mexico lost value on the spot market as the margin between Brent crude and West Texas Intermediate narrowed.
WTI’s discount to Brent shrank by 31 cents to $20.07 a barrel, based on February settlement prices. When Brent loses ground to WTI, it typically weakens the value of U.S. grades that compete with foreign oils priced versus Europe’s benchmark.
Light Louisiana Sweet’s premium to WTI narrowed $2.25 to $19.50 a barrel at 4:14 p.m. New York time, according to data compiled by Bloomberg. The premium for Heavy Louisiana Sweet shrank $1.80 to $18.50.
The premium to WTI for Thunder Horse, which has a lower sulfur content than Mars Blend, Poseidon and Southern Green Canyon, narrowed by $1.50 to $16.75.
Mars’s premium to the U.S. benchmark narrowed by $1.10 to trade at $14.50. Poseidon narrowed 80 cents to $14.75 above the WTI price. Southern Green Canyon’s premium was unchanged at $15 above the benchmark.
The discount for Western Canada Select for February delivery versus WTI was unchanged at $34.65 a barrel at 5:45 p.m. in New York, according to Net Energy Inc., a Calgary-based oil broker.
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