U.S. Gulf Crude Premiums Narrow as WTI-Brent Spread Narrows

Oct. 18, 2011 03:22PM PST

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.

Click here to read the full Bloomberg report