Poseidon crude's discount to Mars has narrowed further for August trade, as Poseidon's falling sulfur content boosts its relative value.
Poseidon, which is delivered to Houma, Louisiana, has averaged a 50¢/bl discount to Mars for August delivery so far, compared with an 89¢/bl discount on average last year and an 82¢/bl gap in the second quarter of trade.
The grade for the June trade month averaged a 56¢/bl spread to Mars, which is delivered to Clovelly, Louisiana, contracting to a 52¢/bl discount for July trade.
Poseidon's sulfur content has decreased to around 1.5pc this year, according to market sources, increasing its value compared with Mars, which has a sulfur content of around 2pc.
Poseidon is produced from fields in the offshore US Gulf of Mexico along the outer continental shelf, located around 200 miles southwest of New Orleans. The crude is then shipped on the Poseidon pipeline to Houma.
