US Cash Crude-Coastal grades firm on higher prices for SPR oil repurchases

US Physical Therapy

27/03/2024 23:07

March 27 (Reuters) - U.S. coastal sour crude oil
differentials gained on Wednesday, dealers said, after the
energy department awarded contracts to buy 2.8 million barrels
of oil for the Strategic Petroleum Reserve for more than $81 a
barrel, $2 above the target price.
    Mars Sour  WTC-MRS  for May delivery gained 45 cents, while 
Southern Green Canyon and Thunder Horse also gained  WTC-SGC 
gained 50 cents.
     The Department of Energy (DOE) said it will spent $225.6
million to buy oil to refill the SPR from Atlantic Trading &
Marketing, Macquarie Commodities, and Sunoco Partners Marketing
& Terminals. The oil is set to be delivered in September.
    The price per barrel is about $81.32 a barrel, based on the
DOE announcement. The department has previously said it aims to
purchase at a price of $79 dollars per barrel or below, less
than the average of about $95 per barrel it received for 2022
emergency SPR sales.
    SPR buybacks will continue at least until September,
providing a floor under domestic U.S. Gulf Coast sour crudes,
consultancy Energy Aspects wrote in a note.
    Meanwhile, WTI Midland  WTC-WTM  gained 15 cents, while WTI
at East Houston firmed 10 cents.
    U.S. crude oil and gasoline inventories rose unexpectedly
last week driven by a rise in crude imports and sluggish
gasoline demand, the Energy Information Administration said on
Wednesday.
    Crude inventories rose 3.2 million barrels to 448.2 million
barrels in the week ended March 22, the EIA said, compared with
analysts' expectations in a Reuters poll for a 1.3
million-barrel draw.
        
    *  Light Louisiana Sweet  WTC-LLS  for May delivery was
unchanged at a midpoint of a $3.00 premium and was seen bid and
offered between a $2.80 and $3.20 a barrel premium to U.S. crude
futures  CLc1 .
    *  Mars Sour  WTC-MRS  gained 45 cents at a midpoint of a
80-cent premium and was seen bid and offered between a 60-cent
and $1 a barrel premium to U.S. crude futures  CLc1 .
    *  WTI Midland  WTC-WTM  gained 15 cents at a midpoint of a
$1.4 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 50 cents at a midpoint of
a 50-cent premium and was seen bid and offered between a 25-cent
and 75-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 $1.90 a barrel premium to U.S. crude futures
 CLc1 .
    * ICE Brent May futures  LCOc1  fell 16 cents to settle at
$86.09 a barrel on Wednesday​. 
    *  WTI May crude  CLc1  futures fell 27 cents and is
currently trading at $81.35 a barrel on Wednesday​.
    *  The Brent/WTI spread  WTCLc1-LCOc1  narrowed 12 cents to
minus $4.62, after hitting a high of minus $4.51 and a low of
minus $4.74.

 (Reporting by Arathy Somasekhar in Houston; Editing by Sam
Holmes.)
 ((Arathy.s@tr.com))