Fluctuating demand for US Gulf Coast crude caused Light Houston Sweet to fall $2.23 week on week to be assessed at $104.46/b Thursday, despite reaching a high of $108.80/b on Monday. Price differentials rocketed earlier in the week, with refinery utilization on the USGC at 94.8%, according to the most recent Energy Information Administration data.
This demand pushed crude differentials to their highest levels since January. Light Louisiana Sweet, the benchmark for USGC sweet crudes, reached a weekly high of WTI plus $6.25/b on July 18.
As August trading came to a close, however, demand quickly left the market.
LLS was assessed at WTI plus $1.75/b Thursday, a $4.50/b decline from its weekly high. WTI-Midland fell $6.20/b week on week to be assessed at WTI minus $16/b. It reached a weekly high of WTI minus $8.70/b July 21.
WTI-Midland specifications at the East Houston terminal apply to Platts' LHS assessment methodology. The LHS differential reflects barrels of WTI-Midland marketed from Magellan Midstream Partner's Longhorn Pipeline at the East Houston terminal.
