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

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

Reuters · 09/13/2022 17:42
U.S. Cash Crude-Coastal grades weaken as WTI/Brent spread

- U.S. coastal crude grades weakened on Tuesday, dealers said, as the discount of U.S. West Texas Intermediate (WTI) crude futures against Brent crude, making U.S. grades less attractive to foreign buyers.

Light Louisiana Sweet WTC-LLS weakened for a third consecutive session and Mars Sour WTC-MRS weakened for a second straight session.

The Brent/WTI spread WTCLc1-LCOc1 31 cents to settle at minus $6.28.

In oil futures, prices ended 1% lower on Tuesday, reversing earlier gains as U.S. consumer prices unexpectedly rose in August, giving cover for the U.S. Federal Reserve to deliver another hefty interest rate increase week. O/R

OPEC on Tuesday stuck to its forecasts for robust global oil demand growth in 2022 and 2023 citing signs that major economies were faring better than expected despite headwinds such as surging inflation.

In U.S. supply, crude and distillate stocks rose, while gasoline inventories fell in the latest week, according to market sources citing American Petroleum Institute figures on Wednesday. API/S

Crude stocks rose by about 6 million barrels for the week ended Sept. 9. Gasoline inventories fell by about 3.2 million barrels, while distillate stocks rose by about 1.8 million barrels, according to the sources, who spoke on condition of anonymity.


* Light Louisiana Sweet WTC-LLS for October delivery fell 10 cents to a midpoint of $2.20 and traded between $2.10 and $2.30 a barrel premium to U.S. crude futures CLc1.

* Mars Sour WTC-MRS fell 20 cents to a midpoint of minus 95 cents and traded between $1.10 and 80 cents a barrel discount to U.S. crude futures CLc1.

* WTI Midland WTC-WTM rose 10 cents to a midpoint of $2.00 and traded between $1.90 and $2.10 a barrel premium to U.S. crude futures CLc1.

* West Texas Sour WTC-WTS was unchanged at a midpoint of minus 20 cents, trading between a 40-cent discount and flat to U.S. crude futures CLc1.

* WTI at East Houston, also known as MEH, traded at $2.45 over WTI.

* ICE Brent November LCOc1 futures fell 83 cents to settle at $93.17 a barrel.

* WTI October crude CLc1 futures fell 47 cents to settle at $87.31 a barrel.

* The Brent/WTI spread WTCLc1-LCOc1 31 cents to settle at minus $6.28, after hitting a high of minus $6.20 and a low of minus $6.71.


(Reporting by Stephanie Kelly in New York, editing by Deepa Babington)

((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters Messaging: stephanie.kelly.thomsonreuters.com@reuters.))