Gulf of Mexico crudes strengthened on the spot market as regional refiners increased runs to the highest level since December and the Brent-WTI spread widened.
Refineries in PADD 3, which includes Texas and Louisiana, boosted crude runs by 151,000 barrels a day in the week ended June 14 to 8.15 million, the highest level since Dec. 14.
The premium for Brent compared to the U.S. benchmark West Texas Intermediate grew 29 cents to settle at $7.64 a barrel. Gulf crudes compete with foreign oils priced against Brent, the European benchmark, for space in Gulf Coast refineries.
Light Louisiana Sweet crude gained 5 cents to $8 a barrel more than WTI in Cushing, Oklahoma, at 2:19 p.m. in New York, according to data compiled by Bloomberg. Mars Blend, a medium-sour crude, strengthened 30 cents to a $2.10-a-barrel premium.
Poseidon oil’s premium grew 50 cents to $1.65 a barrel. Crude from the Southern Green Canyon strengthened by 40 cents to $1 a barrel above the U.S. benchmark. Thunder Horse’s premium increased 20 cents to $4.85 a barrel.
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