US Cash Crude-Mars eases as Brent spread slips below minus-$4

Mars eased 45 cents to trade flat on Friday, dealers said, as the spread between West Texas Intermediate crude (WTI) and Brent reached its narrowest in more than a month.

The WTI-Brent spread traded as narrow as minus $3.95. A narrower spread, particularly under minus-$4, discourages foreign buying of U.S. coastal grades.

Thunder Horse also eased 75 cents to trade at a $1 premium to WTI.

Most oil and gas companies have resumed normal operations after Beryl made landfall as a Category-1 storm on Monday. The impact on Gulf Coast offshore platforms was also minimal, easing worries of supply disruptions.

Meanwhile, Baker Hughes said oil rigs fell by one to 478 this week, their lowest level since December 2021.

Brent crude has been trading in a tight range of $75-$90 a barrel since late 2022 as OPEC+ cuts keep a floor under prices while sizeable spare capacity, demand uncertainty and sanctions policy prevent the market from breaking higher.

Light Louisiana Sweet for August delivery was unchanged at a midpoint of a $2.60 premium and was seen bid and offered between a $2.40 and $2.80 a barrel premium to U.S. crude futures CLc1

Mars Sour WTC-MRS fell 45 cents at a midpoint of parity and was seen bid and offered between a discount of 20 cents and 20-cent a barrel premium to U.S. crude futures CLc1

WTI Midland WTC-WTM fell five cents at a midpoint of a 55-cent premium and was seen bid and offered between a 40-cent and 70-cent a barrel premium to U.S. crude futures CLc1

West Texas Sour WTC-WTS fell 10 cents at a midpoint of a 50-cent discount and was seen bid and offered between a 75-cent and 25-cent a barrel discount to U.S. crude futures CLc1

WTI at East Houston WTC-MEH, also known as MEH, traded between a 70-cent and $1 a barrel premium to U.S. crude futures CLc1

ICE Brent September futures LCOc1 fell 37 cents to settle at $85.03 a barrel on Friday

WTI August crude CLc1 futures fell 41 cents to settle at $82.21 a barrel on Friday

The Brent-WTI spread WTCLc1-LCOc1 widened two cents to minus $4.04, after hitting a high of minus-$3.95 and a low of minus-$4.12.
Source: Reuters (Reporting by Arathy Somasekhar in Houston; Editing by Rod Nickel)