US Cash Crude-Coastal grades firm on tightening supply

US Physical Therapy

01/04/2024 23:43

April 1 (Reuters) - U.S. coastal crude grades gained on
Monday, dealers said, as supplies of sour oil were tightening.
    Mars Sour  WTC-MRS  for May delivery gained $1.30, while
Souther Green Canyon gained $1.25. 
    Mexico's state-controlled oil company plans to halt some
crude exports over the next few months, according to a news
report.
    The energy department's plans to buyback oil for the
Strategic Petroleum Reserve (SPR) also kept a bid under prices
for sour crude. 
    Meanwhile, top oil exporter Saudi Arabia may raise the
official selling price (OSP) for flagship Arab Light crude in
May after Middle East benchmarks strengthened last month,
industry sources said. Higher prices for the crude could push
Asian buyer to look to US for supplies.
    Venezuela's oil exports in March rose to the highest level
since early 2020 as customers rushed to complete purchases ahead
of the likely expiration of a temporary U.S. license that has
allowed the country to freely sell its crude, according to
shipping data and documents.
    In Europe, oil demand was firmer than expected, rising
100,000 barrels per day (bpd) on the year in February, Goldman
Sachs analysts said, versus a forecast for a 200,000-bpd
contraction in 2024.
    OPEC oil output fell last month, a Reuters survey found on
Monday, reflecting lower exports from Iraq and Nigeria against a
backdrop of ongoing voluntary supply cuts by some members agreed
with the wider OPEC+ alliance.
    Russian Deputy Prime Minister Alexander Novak said the
country's oil companies will focus on reducing output rather
than exports in the second quarter to evenly spread production
cuts with other members of OPEC+, the Organization of the
Petroleum Exporting Countries (OPEC) and allied producers.
    
    *  Light Louisiana Sweet  WTC-LLS  for May delivery gained
25 cents at a midpoint of a $3.75 premium and was seen bid and
offered between a $3.50 and $4.00 a barrel premium to U.S. crude
futures  CLc1  ​ 
    *  Mars Sour  WTC-MRS  gained $1.30 at a midpoint of a $2.3
premium and was seen bid and offered between a $2.15 and $2.45 a
barrel premium to U.S. crude futures  CLc1  ​ 
    *  WTI Midland  WTC-WTM  gained 10 cents at a midpoint of a
$1.5 premium and was seen bid and offered between a $1.25 and
$1.75 a barrel premium to U.S. crude futures  CLc1  ​ 
    *  West Texas Sour  WTC-WTS  gained 10 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 June futures  LCOc1  rose 42 cents to settle at
$87.42 a barrel on Monday​. 
    *  WTI May crude  CLc1  futures rose 22 cents and is
currently trading at $83.93 a barrel on Monday​.
    *  The Brent/WTI spread  WTCLc1-LCOc1  widened 15 cents to
minus $4.64, after hitting a high of minus $4.49 and a low of
minus $4.64.

 (Reporting by Arathy Somasekhar in Houston; Editing by David
Gregorio)
 ((Arathy.s@tr.com))