US Cash Crude-Coastal grades strengthen despite narrower US/Brent discount

US Physical Therapy

19/03/2024 21:45

March 19 (Reuters) - U.S. physical coastal crude oil
deals strengthened on Tuesday, dealers said, despite a narrower
discount of U.S. crude to international benchmark Brent.
    U.S. crude's discount to Brent narrowed to as much as minus
$4.55 a barrel on Tuesday. A narrower discount typically
discourages foreign buying of U.S. crudes. 
    In U.S. supply, crude oil inventories fell 1.5 million
barrels in the week ended March 15, according to market sources
citing American Petroleum Institute figures on Tuesday.  API/S 
    Government data is due on Wednesday.
    Oil prices rose to multi-month highs for the second straight
session on Tuesday as traders assessed how Ukraine's recent
attacks on Russian refineries would affect global petroleum
supplies.
    U.S. West Texas Intermediate crude futures CLc1 gained 75
cents, or 0.9%, to settle at $83.47 a barrel, the highest since
Oct. 27. Global benchmark Brent crude LCOc1 settled 0.6% higher
at $87.38 a barrel, the highest since Oct. 31.
    Exxon Mobil  XOM.N  will bring its Permian basin output up
to 2 million barrels per day by 2027, while it also ramps up
production in Guyana, Vice President of Global Exploration John
Ardill said on Tuesday at a conference in Houston.

 *  Light Louisiana Sweet  WTC-LLS  for April delivery gained 50
cents at a midpoint of a $3.40 premium and was seen bid and
offered between a $3.30 and $3.50 a barrel premium to U.S. crude
futures  CLc1  ​ 
 *  Mars Sour  WTC-MRS  gained 40 cents at a midpoint of a
30-cent premium and was seen bid and offered between a 20-cent
and 40-cent a barrel premium to U.S. crude futures  CLc1  ​ 
 *  WTI Midland  WTC-WTM  fell 15 cents at a midpoint of a $1.25
premium and was seen bid and offered between a $1.15 and $1.35 a
barrel premium to U.S. crude futures  CLc1  ​ 
 *  West Texas Sour  WTC-WTS  gained 35 cents at a midpoint of a
85-cent premium and was seen bid and offered between a 75-cent
and 95-cent a barrel premium to U.S. crude futures  CLc1  ​ 
 * WTI at East Houston  WTC-MEH , also known as MEH, traded
betweena $1.40 and $1.60 a barrel premium to U.S. crude futures
 CLc1  ​ 
 *  ICE Brent May futures  LCOc1  rose 49 cents to settle at
$87.38 a barrel on Tuesday​. 
 *  WTI April crude  CLc1  futures rose 75 cents to settle at
$83.47 a barrel on Tuesday​. 
 *  The Brent/WTI spread  WTCLc1-LCOc1  narrowed last to minus
$4.63, after hitting a high of minus $4.55 and a low of minus
$4.78.

 (Reporting by Stephanie Kelly in New York; Editing by David
Gregorio)
 ((Stephanie.Kelly@tr.com))