U.S. Cash Crude-Coastal grades firm as WTI/Brent spread widens

US Physical Therapy

07/11/2022 21:11

Nov 7 (Reuters) - Coastal crude grades strengthened on
Monday, dealers said, as U.S. crude's discount to Brent crude
widened. 
    Light Louisiana Sweet  WTC-LLS  for December delivery gained
60 cents at a midpoint of a $3.50 premium, the strongest in more
than three weeks. Mars Sour  WTC-MRS  rose 50 cents to a
midpoint of a $3.50 discount, the highest since Oct. 19.
    Inland grades WTI Midland  WTC-WTM  and West Texas Sour
 WTC-WTS  were little changed.
    The Brent/WTI spread  WTCLc1-LCOc1  widened 7.0 cents to
settle at minus $7.19, after hitting a high of minus $7.00 and a
low of minus $7.32. A wider spread makes U.S. coastal grades
more attractive to foreign buyers.
    Deliveries of U.S. crude oil to Asia are also set to touch a
record 1.8 million barrels per day this month, Kpler shipping
data showed, as demand climbed on a widening discount to global
oil.
    U.S. oil refiners this quarter are expected to run their
plants at breakneck rates, near or above 90% of capacity.
    Refiner HF Sinclair said challenging macro supply factors
that have helped push margins higher are going to be difficult
for the industry to resolve in the short run.
    In pipeline news, Enbridge Inc  ENB.TO  said its Line 61
pipeline system was temporarily shut down and is running at
reduced rates following the release of crude oil at the Flanagan
Terminal near Pontiac, Illinois, on Saturday.
    * Light Louisiana Sweet  WTC-LLS  for December delivery rose
60 cents to a midpoint of a $3.50 premium and traded between a
$3.25 and a $3.75 a barrel premium to U.S. crude futures  CLc1 .
    * Mars Sour  WTC-MRS  rose 50 cents to a midpoint of a $3.50
discount and traded between a $3.25 and a $3.75 a barrel
discount to U.S. crude futures  CLc1 .
    * WTI Midland  WTC-WTM  fell 5 cents to a midpoint of a
$1.80 premium and traded between a $1.60 and $2.00 a barrel
premium to U.S. crude futures  CLc1 .    
    * West Texas Sour  WTC-WTS  fell 10 cents to a midpoint of
$1 discount and traded between a $1.25 and a $.75 a barrel
discount to U.S. crude futures  CLc1 .    
    * WTI at East Houston, also known as MEH, traded between $2
and $2.50 over WTI.    
    * ICE Brent January  LCOc1  futures fell 65 cents to settle
at $97.92 a barrel.
    * WTI December crude  CLc1  futures fell 82 cents to settle
at $91.79 a barrel.
    * The Brent/WTI spread  WTCLc1-LCOc1  widened 7.0 cents to
settle at minus $7.19, after hitting a high of minus $7.00 and a
low of minus $7.32.
 (Reporting by Arathy Somasekhar; Editing by Richard Chang)
 ((arathy.s@thomsonreuters.com; +1 832 208 3362; Twitter:
@ArathySom;))