Crude Oil Prices: LLS

[dan_s]

I really like the Eagle Ford Shale companies because that oil sells at a premium to WTI. For modeling, us a price half way between WTI and Brent for the wellhead price. - Dan
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Louisiana Crude Benchmark Narrows Price Gap: By U.S. Energy Information Administration - Fri 26 Apr 2013 08:12:24 CT

After reaching a multi-year high above $7 a barrel in March, the premium of Louisiana Light Sweet crude oil over Brent grade has hrunk closer to parity as supply disruptions on the U.S. Gulf Coast eased, according to the Energy Information Administration.

Concerns over global economic growth contributed to declines in both grades in recent weeks, the EIA said in its This Week in Petroleum report. But the LLS price declined less as U.S. refiners along the Gulf completed maintenance and boosted crude runs and as supplies were disrupted by pipeline problems.

Looking further ahead, LLS may begin to sell at a "persistent structural discount" against Brent, as well as other comparable global seaborne crudes, the report said.