U.S. Cash Crude-Grades mostly firm as WTI futures ease

Big Sky Industrial

02/07/2021 22:47

July 2 (Reuters) - U.S. physical crude oil grades mostly
strengthened on Friday as WTI futures eased, widening its
discount to Brent, dealers said.
    Several cash crude grades, particularly U.S. Gulf Coast
grades, held close to their weakest in several months as the
WTI/Brent spread remained tight.       
    The discount of U.S. crude oil futures to Brent futures
 WTCLc1-LCOc1  remained near its tightest since late April 2020,
settling at minus $1.51 a barrel.
    The narrow discount, which generally discourages
international buyers of domestic crude, has weighed on U.S. Gulf
Coast crude oil grades, including Mars Sour crude.  urn:newsml:reuters.com:*:nAQN04DI31
    U.S. crude oil exports dropped to 2.71 million barrels per
day (bpd) in May compared with 3.24 million bpd in April,
foreign trade data from the U.S. Census Bureau showed.
    U.S. energy firms added four oil rigs to 376 for a third
time in four weeks as oil prices rose to their highest since
2018, prompting some drillers to return to the wellpad.
    The crude oil rig count, an early indicator of future
output, rose by 4 to 376 in the week to July 2, its highest
since April 2020, energy services firm Baker Hughes Co  BKR.N 
said.  RIG/U 
    Energy firms have added rigs as oil prices pick up, with
U.S. crude  CLc1  futures trading at about $75 a barrel this
week, the highest since October 2018.  O/R 
    Money managers cut its combined futures and options position
in New York and London by 9,499 contracts to 418,336 in the week
to June 29, the U.S. Commodity Futures Trading Commission said. 
    In refining, the hydrocracker at Shell's  RDSa.L  230,611
bpd Norco, Louisiana refinery is expected to resume normal
operation later on Friday, said sources familiar with plant
operations.  urn:newsml:reuters.com:*:nL2N2OE15B
    Shell is restarting the second stage of the 40,000-bpd
hydrocracker, the sources said. The second stage was shut on
June 18. The first stage remains in operation.
    
    * Light Louisiana Sweet  WTC-LLS  for August delivery rose 5
cents to a midpoint of a 65-cent premium and traded between a
55-cent and 75-cent a barrel premium to U.S. crude futures
 CLc1 .    
    * Mars Sour  WTC-MRS  fell 5 cents to a midpoint of minus
$2.05 and traded between a $2.10 and $2 a barrel discount to
U.S. crude futures  CLc1 .    
    * WTI Midland  WTC-WTM  rose 5 cents to a midpoint of a
5-cent discount and traded between a 15-cent discount and 5-cent
a barrel premium to U.S. crude futures  CLc1 .    
    * West Texas Sour  WTC-WTS  rose 15 cents to a midpoint of a
10-cent discount and traded between a 20-cent a barrel discount
and parity to U.S. crude futures  CLc1 .       
    * WTI at East Houston, also known as MEH, traded at a
midpoint 30 cents of over WTI. 
    * ICE Brent September  LCOc1  futures rose 33 cents to
settle at $76.17 a barrel.
    * WTI August crude  CLc1  futures fell 7 cents to settle at
$75.16 a barrel.
    * The Brent/WTI spread  WTCLc1-LCOc1  settled at minus
$1.51, after hitting a high of minus $1.44 and a low of minus
$1.94 cents.

 (Reporting by Laila Kearney in New York; Editing by David
Gregorio)
 ((Laila.kearney@thomsonreuters.com; (917) 809-0054))