US Cash Crude-Coastal grades firm amid weak Gulf of Mexico offshore output

Bharat Petroleum

31/08/2026 21:14

HOUSTON, Aug 31 (Reuters) - Coastal grades firmed on Monday, dealers said, as Gulf of Mexico offshore production was less than expected and as escalating U.S.-Iran tensions rekindled global supply concerns.
"Lower-than-expected offshore production supported GoM medium differentials in late September trade before the selloff into expiry... But assuming GoM production continues to recover, we see downside risk to current October prices, as domestic USGC sour market fundamentals are set to ease," analysts at Energy Aspects wrote in a note. 
The consultancy said it assumed output of Poseidon and Southern Green Canyon had been most impacted, with lower total sour supply from gulf of Mexico contributing to relatively stronger prices for alternative medium crude. 
Meanwhile, a resumption of military action between the U.S. and Iran rekindled market concerns about global supply disruption, as the conflict extended into its sixth month.
U.S. President Donald Trump also said on Sunday that oil from a recently struck deal with Venezuela will be used to replenish the Strategic Petroleum Reserve (SPR), which has been drawn down sharply in recent years to respond to global supply disruptions and high fuel prices.
Stocks of crude oil in the SPR fell by about 3.1 million barrels to 286.6 million barrels last week, the lowest level since November 1982, according to data from the Department of Energy.
 Light Louisiana Sweet for October delivery firmed $1.15 to a midpoint of a $4.65 premium and was seen bid and offered between a $4.00 and $5.30 a barrel premium to U.S. crude futures CLc1
Mars Sour firmed $1.75 to a midpoint of a $3.75 premium and was seen bid and offered between a $3.50 and $4 a barrel premium to U.S. crude futures CLc1
WTI Midland eased 10 cents to a midpoint of a 70-cent premium and was seen bid and offered between a 50-cent and 90-cent a barrel premium to U.S. crude futures CLc1     
West Texas Sour firmed 50 cents to a midpoint of a 70-cent discount and was seen bid and offered between  a 90-cent and 50-cent a barrel discount to U.S. crude futures CLc1
WTI at East Houston , also known as MEH, traded between a $1.00 and $1.40 a barrel premium to U.S. crude futures CLc1     
ICE Brent November futures LCOc1 rose $2.39 to settle at $90.49 a barrel on Monday​.
WTI October crude CLc1 futures rose $2.36 to settle at $85.76 a barrel on Monday​.
The Brent/WTI spread widened 9 cents to last trade at minus $6.36, after hitting a high of minus $6.35 and a low of  minus $6.79.

 (Reporting by Arathy Somasekhar; Editing by David Gregorio)
 ((arathy.s@thomsonreuters.com))