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U.S. Gulf Crude Premiums Narrow as WTI-Brent Spread Narrows
Oct. 18, 2011 03:22PM PST
Oil and Gas InvestingBloomberg reported that the premiums for U.S. Gulf Coast oils weakened as West Texas Intermediate crude’s discount to Brent oil narrowed.
Bloomberg reported that the premiums for U.S. Gulf Coast oils weakened as West Texas Intermediate crude’s discount to Brent oil narrowed.
As quoted in the market news:
The gap between WTI and Brent December contracts weakened 92 cents to $22.62 at settlement. The spread for prompt month contracts settled at a record $27.88 a barrel Oct. 14. When Brent decreases versus WTI, it weakens the value of low-sulfur U.S. grades that compete with West African oil priced against the European benchmark.
Heavy Louisiana Sweet’s premium to WTI narrowed $2.20 to $25.40 a barrel while Light Louisiana Sweet lost $2 to $25.50 above the U.S. benchmark.Among sour, or high-sulfur, grades, the premium for Mars Blend decreased $2.15 to $21.10 a barrel and Poseidon lost $4.10 to $19 a barrel over WTI.