US Cash Crude-Coastal grades firm for second day on SPR purchases

US Physical Therapy

28/03/2024 22:15

March 28 (Reuters) - U.S. coastal crude grades gained on
Thursday in light trading, dealers said, a day before the good
Friday holiday, helped by purchases of sour oil for the
government's emergency reserve. 
    The energy department awarded contracts on Wednesday to buy
2.8 million barrels of oil for the Strategic Petroleum Reserve
(SPR) for more than $81 a barrel, $2 above the target price.
    Mars Sour  WTC-MRS  for May delivery gained 20 cents, while
Southern Green Canyon eased 10 cents, but remained at a high
level. 
    SPR purchases will continue through at least September. 
    Meanwhile, Baker Hughes said U.S. oil rigs, an indicator of
future production, fell by three to 506 this week.
    Oil prices will gain some momentum this year as demand picks
up and output curbs by the OPEC+ producer group continue to
squeeze supply that is already being pressured by military
conflicts, a Reuters poll showed on Thursday.
    
            
    *  Light Louisiana Sweet  WTC-LLS  for May delivery gained
50 cents at a midpoint of a $3.50 premium and was seen bid and
offered between a $3.00 and $4.00 a barrel premium to U.S. crude
futures  CLc1  ​ 
    *  Mars Sour  WTC-MRS  gained 20 cents at a midpoint of a $1
premium and was seen bid and offered between a 75-cent and $1.25
a barrel premium to U.S. crude futures  CLc1  ​ 
    *  WTI Midland  WTC-WTM  was unchanged at a midpoint of a
$1.40 premium and was seen bid and offered between a $1.20 and
$1.60 a barrel premium to U.S. crude futures  CLc1  ​ 
    *  West Texas Sour  WTC-WTS  fell 10 cents at a midpoint of
a 40-cent premium and was seen bid and offered between a
discount of 10 cents​​ and a 90-cent a barrel premium to U.S.
crude futures  CLc1  ​ 
    * WTI at East Houston  WTC-MEH , also known as MEH, traded
between a $1.50 and $2.00 a barrel premium to U.S. crude futures
 CLc1  ​ 
    *  ICE Brent May futures  LCOc1  rose $1.39 to settle at
$87.48 a barrel on Thursday​. 
    *  WTI May crude  CLc1  futures rose $1.82 to settle at
$83.17 a barrel on Thursday​. 
    *  The Brent/WTI spread  WTCLc1-LCOc1  narrowed 34 cents to
minus $4.42, after hitting a high of minus $4.40 and a low of
minus $4.42.

 (Reporting by Arathy Somasekhar in Houston; Editing by Jamie
Freed)
 ((Arathy.s@tr.com))