Offshore Gulf Coast oils weakened against the benchmark West Texas Intermediate toward the end of trading for July delivery, as pipeline projects are prepared to increase supplies of onshore crudes in the region.
Poseidon fell $1.05 a barrel against WTI at 3:51 p.m. to a 60-cent-a-barrel premium, according to data compiled by Bloomberg. The pipelines include Sunoco Logistics Partners LP’s Permian Express project, planned for the second quarter, and Royal Dutch Shell Plc’s expansion of its reversed Houston-to-Houma, Louisiana pipeline to 250,000 barrels a day by early 2014.
“We’re basically just about finished trading July barrels and are moving to August,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “The Sunoco Permian Express pipeline is expected to start up in July, which is right around the corner.”
Mars Blend’s premium to WTI lost 60 cents to $1.50 a barrel. Southern Green Canyon weakened by 20 cents to a premium of 80 cents a barrel.
The premium for Thunder Horse, which has a lower sulfur content than Mars, Poseidon and Southern Green Canyon, weakened by 10 cents to $4.75 a barrel.
Light Louisiana Sweet strengthened by 25 cents a barrel to a premium of $8.25 over WTI and Heavy Louisiana Sweet’s premium to WTI widened 5 cents to $7.80.
To contact the reporter on this story: Eliot Caroom in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com