US Cash Crude-Coastal medium sour grades rise on Iran war, wide Brent/WTI spreads

Baker Hughes

20/07/2026 22:06

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HOUSTON, July 20 (Reuters) - U.S. medium sour coastal oil firmed on Monday, dealers said, as renewed fighting in the Middle East is expected to tighten supplies of similar grades globally and widened the spread between globally traded Brent and U.S. West Texas Intermediate (WTI) . 
The Middle East conflict escalated over the weekend, with the U.S. conducting a ninth straight night of attacks against Iran, while U.S. allies Kuwait and Bahrain reported more Iranian strikes. Yemen's Iran-aligned Houthis said on Monday they would impose a naval blockade on Saudi Arabia, opening a potential new front against the U.S. in its war with Iran and raising the threat to global energy supplies and trade beyond the Gulf.
Four vessels made the transit through the Strait of Hormuz on Sunday, down from eight the previous day, LSEG data showed. Oil transfers between tankers in waters outside the Strait of Hormuz have slowed following a wave of recent attacks on vessels by Iranian forces, according to satellite analysis and sources.
U.S. Gulf Coast medium sour crudes like Mars, Southern Green Canyon oil differentials will strengthen further into August trade expiry as escalating geopolitical tensions force the market to re-price risks to global sour supplies, while strong domestic demand and slowing SPR sour releases further tighten availability, analysts at Energy Aspects wrote in a note.
The spread between Brent and WTI widened 17 cents to last trade at minus $6.49, after hitting a high of minus $6.28 and a low of minus $6.94. A spread wider than minus $4 incentivizes  exports of U.S. crude. 
Meanwhile, Chevron <CVX.N>is shutting in production at its Petronius facility in the U.S. Gulf of Mexico, and all associated personnel are being moved onshore in preparation for Tropical Depression Two, the company said in a statement. The U.S. oil major also said it is transporting nonessential personnel from its Tubular Bells and Blind Faith platforms.
      
Light Louisiana Sweet for August delivery was unchanged at a midpoint of a $2.50 premium and was seen bid and offered between $2.40 and $2.60 a barrel premium to U.S. crude futures CLc1 
Mars Sour firmed 50 cents to a midpoint of a $1.25 premium and was seen bid and offered between a $1.00- and $1.50-a-barrel premium to U.S. crude futures CLc1 
WTI Midland eased 40 cents to a midpoint of a 5-cent discount and was seen bid and offered between a discount of 25 cents​​ and 15-cent-a-barrel premium to U.S. crude futures CLc1
West Texas Sour eased more than $1 at a midpoint of a $3.45 discount and was seen bid and offered between a $3.65- and $3.25-a-barrel discount to U.S. crude futures CLc1 ​
WTI at East Houston , also known as MEH, traded between parity and a 40-cent​-a-barrel premium to U.S. crude futures CLc1 
ICE Brent September futures LCOc1 rose $1.12 to settle at $89.22 a barrel on Monday​.
WTI August crude CLc1 futures rose 74 cents to settle at $83.23 a barrel on Monday​.
The Brent/WTI spread widened 17 cents to last trade at minus $6.49, after hitting a high of minus $6.28 and a low of minus $6.94.

(Reporting by Arathy Somasekhar in Houston' Editing by Mark Porter)
((Arathy.s@thomsonreuters.com))