Gulf of Mexico crude grades strengthened on the spot market as Brent oil gained ground against U.S. benchmark West Texas Intermediate.
Brent, the benchmark for overseas exports, gained 29 cents to a premium of $20.67 a barrel against WTI at a 2:08 p.m. New York time. Offshore domestic crudes tend to strengthen along with international oil prices because they compete in the same coastal refinery market.
Light Louisiana Sweet oil strengthened 50 cents to $22.75 a barrel above WTI in Cushing at 2:02 p.m., according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium gained 90 cents to $23 a barrel.
Mars Blend advanced 25 cents to $17.75 above Brent, while Bonito Sour strengthened 40 cents to a $20.15 premium.
Poseidon’s premium declined 15 cents to $18 a barrel over WTI, while Southern Green lost 25 cents to a $15.75-a-barrel premium.
Spot market activity was light as traders covered positions and balanced their books before tomorrow’s scheduling deadline for March pipeline delivery. The last days of spot trading before the cutoff are typically characterized by light volume and erratic pricing.
In New York, West Texas Intermediate crude oil futures for April delivery declined to a six-week low as government data showed that U.S. crude supplies rose to the highest level since July. WTI fell 2.3% to $92.89 a barrel at 2:12 p.m.
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