US Cash Crude-Mars firms as WTI/Brent discount widens

US Physical Therapy

26/04/2024 22:35

April 26 (Reuters) - U.S. physical crude grades largely
strengthened on Friday, dealers said, on the first day of June
trade after a volatile roll trading period.
    Mars Sour  WTC-MRS  gained $1.80 a barrel, while WTI Midland
 WTC-WTM  gained 15 cents.      
    Traders and refiners use the three-day "roll" period after
the expiry of the front-month U.S. light crude contract to
adjust slate and manage exposure, causing more volatility in
prices.
    West Texas Intermediate crude futures' discount to Brent
widened to as much as minus $5.63, the most in more than three
months. A wider spread typically boost demand for coastal
crudes. 
    Meanwhile, Mexican state oil company Pemex is reversing
crude exports cuts of at least 330,000 barrels per day (bpd)
planned for May amid a smaller-than-expected oil demand by the
company's domestic refineries, two sources close to the decision
said.  urn:newsml:reuters.com:*:nL2N3GZ2QU
    More abundant supplies of Mexican crude along the Gulf Coast
will likely ease some of the heavy tightness and price
differentials of alternate grades like Mars and Western Canadian
Select.
    In refining news, Lyondell Basell Industries  LYB.N  said
its Houston crude oil refinery would operate at 95% of its
capacity of 263,776 barrels per day (bpd) in the second quarter.
    Phillips 66  PSX.N  said it expects second quarter worldwide
crude utilization rate to be about mid-90%.    
    
     *  Light Louisiana Sweet  WTC-LLS  for May delivery fell 20
cents at a midpoint of a $2.80 premium and was seen bid and
offered between a $2.60 and $3.00 a barrel premium to U.S. crude
futures  CLc1  ​ 
    *  Mars Sour  WTC-MRS  gained $1.80 at a midpoint of a
30-cent premium and was seen bid and offered between a 15-cent
and 45-cent a barrel premium to U.S. crude futures  CLc1  ​ 
    *  WTI Midland  WTC-WTM  gained 15 cents at a midpoint of a
85-cent premium and was seen bid and offered between a 70-cent
and $1.00 a barrel premium to U.S. crude futures  CLc1  ​ 
    *  West Texas Sour  WTC-WTS  fell 55 cents at a midpoint of
a 15-cent discount and was seen bid and offered between ​
discount of 30 cents and parity to U.S. crude futures  CLc1  
    * WTI at East Houston  WTC-MEH , also known as MEH, traded
between a $1.75 and $2.15 a barrel premium to U.S. crude futures
 CLc1  ​ 
    *  ICE Brent June futures  LCOc1  rose 49 cents to settle at
$89.5 a barrel 
    *  WTI June crude  CLc1  futures rose 28 cents to settle at
$83.85 a barrel 
    *  The Brent/WTI spread  WTCLc1-LCOc1  widened 19 cents to
minus $5.44, after hitting a high of minus $5.35 and a low of
minus $5.68.

 (Reporting by Arathy Somasekhar in Houston;
Editing by Marguerita Choy)
 ((Arathy.s@tr.com))