West Texas Sour crude weakened to an eight-month low relative to the U.S. benchmark as refinery maintenance along the Gulf Coast reduced demand for Permian Basin oil.
WTS, a low-density, high-sulfur grade, fell $1 to a $8-a-barrel discount to West Texas Intermediate in Cushing, Oklahoma, at 4:11 p.m., according to data compiled by Bloomberg. It’s the largest discount since Jan. 25.
Phillips 66 (PSX:US) is performing maintenance at its 146,000-barrel-a-day refinery in Borger, Texas, Rich Johnson, a Houston-based company spokesman, said in an e-mailed statement Oct. 18. The plant may be forced to keep a fluid catalytic cracker shut for at least two weeks for repairs, a person with knowledge of the situation said Oct. 18.
Flint Hills Resources LLC, Exxon Mobil Corp. (XOM:US) and Motiva Enterprises LLC are among companies said to be planning work this month at Texas and Louisiana plants with a combined capacity to process more than 2.3 million barrels of crude a day.
West Texas Intermediate in Midland also weakened relative to its counterpart in Cushing, falling $1.25 to a discount of $6.75 a barrel.
WTS and WTI in Midland are both crudes from the Permian Basin, the largest oil field in the U.S.
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