U.S. sweet, sour oil price spread narrows on strong sour demand – Reuters.com

U.S. sweet, sour oil price spread narrows on strong sour demand – Reuters.com

HOUSTON, June 20 (Reuters) - U.S. sweet and sour oil differentials narrowed significantly this month, pricing data showed, as demand for higher sulfur crudes climbed from refineries and exporters while supplies tightened.

The spread between Light Louisiana Sweet and Mars sour crude, both priced in Louisiana, narrowed to $1.70 a barrel last week from about $6.75 per barrel at the start of the year and $9.20 per barrel a year ago.

Buyers globally are expected to snap up sour crudes as top oil exporter Saudi Arabia plans to cut its overall output by 1 million barrels per day beginning next month.