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US Cash Crude-Grades gain ahead of roll trade

U.S. cash crude grades largely gained on Friday, dealers said, on the last day of October trade for U.S. West Texas Intermediate crude futures (WTI) contract.

Monday will be the first day of the “roll trade”, following the expiry of the WTI contract. Traders use the three-day roll period to square positions and manage exposure, resulting in more volatile trading.

Mars Sour and Midland gained 5 cents, while WTI at East Houston, also known as MEH, gained 30 cents.

The spread between U.S. West Texas Intermediate crude and Brent narrowed 24 cents to settle at minus $3.48, the lowest since October. A spread below minus $4 typically discourages exports of US crude.

Refinery demand is expected to wane next month due to autumn maintenance.

Oil refiners in Asia, Europe and the United States are facing a drop in profitability to multi-year lows, marking a downturn for an industry that had enjoyed surging returns post-pandemic and underlining the extent of the current slowdown in global demand.

Light Louisiana Sweet for October delivery fell 70 cents at a midpoint of a $1.20 premium and was seen bid and offered between a $1.00 and $1.40 a barrel premium to U.S. crude futures CLc1

Mars Sour gained 5 cents at a midpoint of a $2 discount and was seen bid and offered between a $2.20 and $1.80 a barrel discount to U.S. crude futures.

WTI Midland gained 5 cents at a midpoint of a 55-cent premium and was seen bid and offered between a 30-cent and 80-cent a barrel premium to U.S. crude futures CLc1

West Texas Sour fell 60 cents at a midpoint of a $1 discount and was seen bid and offered between a $1.20 and 80-cent a barrel discount to U.S. crude futures CLc1

WTI at East Houston, also known as MEH, traded between a $1.25 and $1.65 a barrel premium to U.S. crude futures CLc1

ICE Brent November futures fell 39 cents to settle at $74.49 a barrel

WTI October crude futures fell 3 cents to settle at $71.92 a barrel

The Brent/WTI spread narrowed 24 cents to minus $3.48, after hitting a high of minus $3.46 and a low of minus $3.73.
Source: Reuters (Reporting by Arathy Somasekhar in Houston;)

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