US Cash Crude-Grades broadly weaken as WTI/Brent spread at narrowest since April
U.S. cash crude grades broadly weakened on Friday, the second day of a three-day cash roll period, dealers said, as U.S. crude’s discount matched its narrowest since April.
U.S. crude’s discount to the international benchmark Brent narrowed on Friday to as much as $3.23 a barrel, equal to a discount hit Aug. 31. That is the narrowest the spread between the two benchmarks has been since April 28.
A narrower spread discourages foreign buying of U.S. crude grades.
Several grades dropped to their weakest levels in months on the narrower spread.
Light Louisiana Sweet WTC-LLS weakened to trade at a $1.40-per-barrel premium to U.S. crude futures CLc1, the weakest since April 25.
Mars Sour WTC-MRS weakened to trade at a $2.25 discount, the weakest since Jan. 31.
WTI Midland WTC-WTM traded at a midpoint of a $1.00 premium, weakest since July 20.
In an indication of future supply, U.S. energy firms this week cut oil rigs by eight to 507, their lowest since February 2022, energy services firm Baker Hughes BKR.O said Friday.
Money managers raised their net long U.S. crude futures and options positions in the week to Sept. 19 by 17,227 contracts to 269,446 during the period, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Light Louisiana Sweet WTC-LLS for October delivery fell 20 cents at a midpoint of a $1.40 premium and was seen bid and offered between a $1.00 and $1.80 a barrel premium to U.S. crude futures.
Mars Sour WTC-MRS fell 85 cents at a midpoint of a $2.25 discount and was seen bid and offered between a $2.35 and $2.15 a barrel discount to U.S. crude futures.
WTI Midland WTC-WTM fell 60 cents at a midpoint of a $1 premium and was seen bid and offered between a 90-cent and $1.10 a barrel premium to U.S. crude future.
West Texas Sour WTC-WTS fell $1.10 at a midpoint of a 50-cent discount and was seen bid and offered between a 90-cent and 10-cent a barrel discount to U.S. crude futures.
WTI at East Houston WTC-MEH, also known as MEH, traded between a$1.40 and $1.60 a barrel premium to U.S. crude futures.
ICE Brent November futures LCOc1 fell 3 cents to settle at $93.27 a barrel on Friday.
WTI November crude CLc1 futures rose 40 cents to settle at $90.03 a barrel on Friday.
The Brent/WTI spread WTCLc1-LCOc1 narrowed after hitting a high of minus $3.23 and a low of minus $3.64.
Source: Reuters (Reporting by Stephanie Kelly in New York; Editing by Josie Kao)