U.S. Cash Crude-Grades mixed as Keystone pipeline shuts after leak

US Physical Therapy

08/12/2022 22:09

Dec 8 (Reuters) - U.S. physical crude oil grades were
mixed on Thursday as the TC Energy shut flows on its Keystone
crude oil pipeline following a leak in Kansas, dealers said.
    Inland WTI Midland crude eased 25 cents to a midpoint of a
25-cent premium to U.S. crude futures, while coastal grade Light
Louisiana Sweet crude held steady.  urn:newsml:reuters.com:*:nL1N32Y195
    Canada's TC Energy  TRP.TO  said it shut its 622,000
barrel-per-day Keystone pipeline on Wednesday night after a
spill into a Kansas creek. Keystone is the primary line shipping
heavy Canadian crude from Alberta to the U.S. Midwest and Gulf
Coast.
    It was unclear how long the closure would last. 
    U.S. crude oil futures initially rallied on the news, which
meant a hefty amount of crude supply would not hit the U.S. and
global market, but then prices eased on the prospect that the
line might soon return to service.
   Oil majors Exxon Mobil Corp  XOM.N  and Chevron Corp  CVX.N 
said they would ramp up investments next year, but the spending
would not immediately lead to more production.  urn:newsml:reuters.com:*:nL1N32Y19F
    Exxon said it would increase project investments next year
to between $23 billion to $25 billion, up from a projected $22
billion this year. Chevron said it plans to spend $17 billion,
up from about $15 billion this year. 
    * Light Louisiana Sweet  WTC-LLS  for January delivery fell
15 cents to a midpoint of $1.15 and traded between a $1 and
$1.30 a barrel premium to U.S. crude futures  CLc1 .    
    * Mars Sour  WTC-MRS  was unchanged at a midpoint of a $5.75
discount, trading between a $5.85 and $5.65 a barrel premium to
U.S. crude futures  CLc1 .    
    * WTI Midland  WTC-WTM  fell 25 cents to a midpoint of 25
cents and traded between parity and a 50-cent a barrel premium
to U.S. crude futures  CLc1 .    
    * West Texas Sour  WTC-WTS  rose $1.02 to a midpoint of
minus $2.13 and traded between a $2.25 and $2 a barrel discount
to U.S. crude futures  CLc1 .    
    * WTI at East Houston, also known as MEH, traded from 50
cents to 70 cents over WTI.   
    * ICE Brent February  LCOc1  futures fell $1.02 cents to
settle at $76.15 a barrel.
    * WTI January crude  CLc1  futures fell 55 cents to settle
at $71.46 a barrel.
    * The Brent/WTI spread  WTCLc1-LCOc1  narrowed 32 cents to
settle at minus $4.57, after hitting a high of minus $3.93 and a
low of minus $4.88.
 (Reporting by Laila Kearney; Editing by Diane Craft)
 ((Laila.kearney@thomsonreuters.com; (917) 809-0054))