U.S. Cash Crude-Grades give mixed signals as traders weigh China recovery

US Physical Therapy

16/02/2023 22:19

Feb 16 (Reuters) - U.S. physical crude oil grades showed
more signs of weakness on Thursday as traders received mixed
signals about China's economic recovery.
    Saudi Arabia's top energy official said, in an interview
published by Energy Aspects, that the current OPEC+ deal on oil
output would be locked in until the end of the year, adding he
remained cautious on Chinese demand forecasts.
    OPEC+, comprising the Organization of the Petroleum
Exporting Countries and allies such as Russia, agreed in October
to cut oil production targets by 2 million barrels per day (bpd)
until the end of 2023.  urn:newsml:reuters.com:*:nL1N34W1WS
    And while U.S. data suggested the U.S. jobs market remained
robust, a gauge of manufacturing in the mid-Atlantic region
unexpectedly plunged.
    Mars Sour crude, however, strengthened 30 cents to a
midpoint of a $1.00 discount amid choppy trade.
    Inland grade WTI Midland crude weakened 10 cents to a
midpoint of a $2.45 premium to U.S. crude futures. 
    In what could be good news for WTI oil prices, the North
Dakota State Industrial Commission reported weakness from Bakken
shale fields, where preliminary production data for December
showed a 12.9% decline vs November levels, according to analysts
at Roth MKM. December production was 956,300 barrels per day,
down from November's level of about 1.1 million barrels per day.
    * Light Louisiana Sweet  WTC-LLS  for March delivery fell 5
cents to a midpoint of $3.5 and traded between $3.40 and $3.60 a
barrel premium to U.S. crude futures  CLc1 .    
    * Mars Sour  WTC-MRS  rose 30 cents to a midpoint of minus
$1.00 and traded between minus $1.20 and minus $1.10 a barrel
discount to U.S. crude futures  CLc1 .    
    * WTI Midland  WTC-WTM  fell 10 cents to a midpoint of $2.45
and traded between $2.35 and $2.55 a barrel premium to U.S.
crude futures  CLc1 .    
    * West Texas Sour  WTC-WTS  fell 45 cents to a midpoint of
minus 35 cents and traded between minus 45 cents and minus 25
cents a barrel discount to U.S. crude futures  CLc1 .    
    * WTI at East Houston, also known as MEH, traded at $2.60
over WTI. 
    * ICE Brent April  LCOc1  futures fell 24 cents to settle at
$85.14 a barrel.
    * WTI March crude  CLc1  futures fell 10 cents to settle at
$78.49 a barrel.
    * The Brent/WTI spread  WTCLc1-LCOc1  narrowed 15 cents to
settle at minus $6.40, after hitting a high of minus $6.36 and a
low of minus $6.53.   
 (Reporting by Tim McLaughlin; Editing by Diane Craft)
 ((Tim.McLaughlin@ThomsonReuters.com))