U.S. Cash Crude-Coastal grades ease as pipelines stop and start

US Physical Therapy

09/12/2022 22:19

Dec 9 (Reuters) - U.S. Gulf Coast crude oil grades
mostly weakened on Friday as the Zydeco pipeline started up,
while the Keystone line remained shut after a leak this week,
dealers said.
    Light Louisiana Sweet crude for January delivery eased 15
cents to a midpoint of $1 a barrel premium to U.S. crude
futures, while Magellan at East Houston crude weakened 35 cents
to a midpoint of a 25-cent premium.
    TC Energy's  TRP.TO  Keystone pipeline, which ferries about
600,000 barrels of Canadian crude per day (bpd) to the United
States, remained shut since late on Wednesday after a breach
spewed more than 14,000 barrels of oil into a Kansas creek.
 urn:newsml:reuters.com:*:nL1N32Z1LP  urn:newsml:reuters.com:*:nL1N32Z26L
    If the outage lasts for more than 10 days, it could push the
Cushing, Oklahoma, storage to near the operational minimum of 20
million barrels, researchers said.
    In other pipeline news, Shell Pipeline Co.'s Zydeco oil
pipeline from Houston to Port Neches, Texas, has been returned
to normal operations, the company said, after the segment ran at
reduced capacity.  urn:newsml:reuters.com:*:nL1N32Z25H
    The company in November said that the segment was running at
reduced capacity due to project work at Port Neches. It added
that it was expected to remain at reduced capacity until mid to
late December.
    In a sign of future supply, the number of rigs drilling for
gas in the United States fell by 2 to 153 in the week to Dec. 9,
while oil-directed drilling rigs fell by 2 to 625, data from oil
services firm Baker Hughes showed.  urn:newsml:reuters.com:*:nL1N32Z1N2
    Meanwhile, money managers cut their net long U.S. crude
futures and options positions in the week to Dec. 6, the U.S.
Commodity Futures Trading Commission (CFTC) said, by 5,429
contracts to 161,455 during the period.  urn:newsml:reuters.com:*:nAQN29AOCD
    * Light Louisiana Sweet  WTC-LLS  for January delivery fell
15 cents to a midpoint of $1 and traded between an 80-cent and
$1.20 a barrel premium to U.S. crude futures  CLc1 .    
    * Mars Sour  WTC-MRS  rose 5 cents to a midpoint of minus
$5.70 and traded between a $5.80 and $5.60 a barrel discount to
U.S. crude futures  CLc1 .    
    * WTI Midland  WTC-WTM  fell 25 cents to a midpoint of
parity and traded between a 20-cent discount and 20-cent a
barrel premium to U.S. crude futures  CLc1 .    
    * West Texas Sour  WTC-WTS  rose 63 cents to a midpoint of
minus $1.50 and traded between a $1.75 and $1.25 a barrel
discount to U.S. crude futures  CLc1 .    
    * WTI at East Houston, also known as MEH, traded from parity
to 50 cents over WTI.   
    * ICE Brent February  LCOc1  futures fell 5 cents to settle
at $76.10 a barrel.
    * WTI January crude  CLc1  futures fell 44 cents to settle
at $71.02 a barrel.
    * The Brent/WTI spread  WTCLc1-LCOc1  widened 32 cents to
settle at minus $4.89, after hitting a high of minus $4.24 and a
low of minus $4.98.
 (Reporting by Laila Kearney; Editing by Daniel Wallis)
 ((Laila.kearney@thomsonreuters.com; (917) 809-0054))