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U.S. Cash Crude-Coastal grades mostly ease as WTI/Brent spread narrows

U.S. Cash Crude-Coastal grades mostly ease as WTI/Brent spread narrows

Reuters · 07/27/2022 16:54
U.S. Cash Crude-Coastal grades mostly ease as WTI/Brent spread

- U.S. Gulf Coast cash crude grades broadly weakened on Wednesday as the discount of domestic oil futures to the international Brent benchmark , dealers said.

Mars Sour crude eased 20 cents to a midpoint of minus $2.20, while the spread between West Texas Intermediate crude (WTI) and Brent futures WTCLc1-LCOc1 12 cents to settle at minus $9.30 a barrel.

A spread typically discourages exports of U.S. crude. Still, the spread remains multi-year highs and barrels have been sent to the coast at rapid rates.

The U.S. logged record crude exports last week to 4.5 million barrels per day, while inventories dropped by 4.5 million to 422.1 million barrels in the week ended July 22, the U.S. Energy Information Administration said. EIA/S

U.S. crude production rebounded to 12.1 million bpd after two weeks of declines, rising 200,000 bpd in its biggest increase since December.

Refinery crude runs fell by 292,000 bpd in the last week, the EIA said. Refinery utilization rates fell by 1.5 percentage points in the week to 92.2%.

U.S. oil refiners are expected to have about 391,000 bpd of capacity offline for the week ending July 29, increasing available refining capacity by 245,000 bpd, research company IIR Energy said.

Meanwhile, at least four crude and refined products traders, including two senior managers, have departed Motiva Trading, created under Aramco's Houston refining firm Motiva Enterprises, sources said, amid its merger with Aramco Trading.


* Light Louisiana Sweet WTC-LLS for September delivery fell 12 cents to a midpoint of $2.38 and traded between a $2.25 and $2.50 a barrel premium to U.S. crude futures CLc1.

* Mars Sour WTC-MRS fell 20 cents to a midpoint of minus $2.20 and traded between a $2.40 and $2 a barrel discount to U.S. crude futures CLc1.

* WTI Midland WTC-WTM rose 20 cents to a midpoint of $1.50 and traded between a $1.30 and $1.70 a barrel premium to U.S. crude futures CLc1.

* West Texas Sour WTC-WTS dropped $1.00 to a midpoint of 50 cents and traded between a $1 a barrel discount and parity to U.S. crude futures CLc1.

* WTI at East Houston, also known as MEH, traded from $1.80 and $2 over WTI.

* ICE Brent September LCOc1 futures rose $2.22 to settle at $106.62 a barrel.

* WTI September crude CLc1 futures rose $2.28 to settle at $97.26 a barrel.

* The Brent/WTI spread WTCLc1-LCOc1 12 cents to minus $9.30, after hitting a high of minus $8.72 and a low of minus $9.75.



(Reporting by Laila Kearney in New York
Editing by Marguerita Choy)

((Laila.kearney@thomsonreuters.com; (917) 809-0054))