US Cash Crude-Coastal grades rise as WTI-Brent spread widens for fourth session

CVR Energy

27/01/2025 23:12

Jan 27 (Reuters) - U.S. coastal crude grades Light
Louisiana Sweet and Mars traded higher on Monday, dealers said,
as the WTI-Brent spread widened to its largest discount since
Jan. 13, according to LSEG. 
    The spread between U.S. West Texas Intermediate and Brent
crude widened for the fourth straight session to as much as
minus $3.97 per barrel. Minus $4 per barrel is typically
considered the level that encourages U.S. exports.
    In refining news, LyondellBasell Industries  LYB.N  began
shuttering its 263,776 barrels per day (bpd) Houston refinery on
Monday for permanent closure, said people familiar with plant
operations.
    The shutdown of the refinery is expected to be completed by
early February as the refinery has only a few days of supply of
crude oil on hand, the sources said.
    U.S. oil refiners are expected to have about 1.4 million bpd
of capacity offline in the week ending Jan. 31, decreasing
available refining capacity by 195,000 bpd, research company IIR
Energy said on Monday.
    Offline capacity is expected to rise to 1.46 million bpd in
the week ending Feb. 7, IIR added.
    Oil production in Kazakhstan reached a daily record high of
278,499 metric tons on Sunday just after it embarked on an
expansion of its largest oilfield, Chevron-led  CVX.N  Tengiz,
according to official data.
    Sunday's record high Kazakh output equates to around 2 bpd
if a barrels per ton ratio of 7.5 is applied.
     Elsewhere, U.S. crude oil stockpiles and gasoline were
expected to have risen last week while distillate inventories
likely fell, a preliminary Reuters poll showed on Monday.
    Four analysts polled by Reuters estimated on average that
crude inventories rose by about 3.7 million barrels in the week
to Jan. 24.


 * Light Louisiana Sweet  WTC-LLS  for March delivery rose 90
cents to a midpoint of a $2.60 premium and was seen bid and
offered between a $2.50 and $2.70 a barrel premium to U.S. crude
futures  CLc1 
 * Mars Sour  WTC-MRS  rose 80 cents to a midpoint of a 50-cent
premium and was seen bid and offered between a 40-cent and
60-cent a barrel premium to U.S. crude futures  CLc1 
 * WTI Midland  WTC-WTM  was steady at a midpoint of a $1.05
premium and was seen bid and offered between a 80-cent and $1.30
a barrel premium to U.S. crude futures  CLc1 
 * West Texas Sour  WTC-WTS  was unchanged at a midpoint of
parity and was seen bid and offered between a discount of 20
cents and a 20-cent a barrel premium to U.S. crude futures
 CLc1 
 * WTI at East Houston  WTC-MEH , also known as MEH, traded
between a $1.35 and $1.55 a barrel premium to U.S. crude futures
 CLc1 
 * ICE Brent March futures  LCOc1  fell $1.42 to settle at
$77.08 a barrel 
 * WTI March crude  CLc1  futures fell $1.49 to settle at $73.17
a barrel 
 * The Brent/WTI spread  WTCLc1-LCOc1  widened 3 cents to last
trade at minus $3.87, after hitting a high of minus $3.78 and a
low of minus $3.97

 (Reporting by Georgina McCartney in Houston; Editing by Jamie
Freed)
 ((Georgina.McCartney@tr.com))