off-the-wire

U.S. Cash Crude-Inland grades weaken as WTI/Brent spread sharply narrows

Kitco Media
By Reuters
Published:
Updated:
Reuters
Jan 31 (Reuters) - U.S. inland crude grades weakened on Tuesday, dealers said, as U.S. crude's discount to Brent sharply narrowed after widening earlier this week.


U.S. West Texas Intermediate crude futures' discount to international benchmark Brent narrowed on Tuesday to as much as $5.62 a barrel. The spread previously widened to $7.23 a barrel on Monday, widest since Nov. 28. A narrower discount makes U.S.-linked grades less attractive to foreign buyers.


WTI Midland eased 10 cents at a midpoint of a $1.95 premium. It strengthened on Monday to a $2.05 premium, highest since Oct. 18. West Texas Sour fell 60 cents at a midpoint of a 55-cent discount. Coastal grades were mixed, with Light Louisiana Sweet strengthening while Mars Sour softened. Demand for U.S. crude and petroleum products rose 178,000 barrels per day (bpd) in November to 20.59 million bpd, the highest since August, the U.S. Energy Information Administration (EIA) said Tuesday in its Petroleum Supply Monthly (PSM) report. Monthly crude oil field production fell in November to 12.38 million bpd, down from a 31-month high of 12.41 million bpd in October, EIA said.
* Light Louisiana Sweet for March delivery gained 10 cents at a midpoint of a $3.5 premium and was seen bid and offered between a $3.4 and $3.6 a barrel premium to U.S. crude futures ?

* Mars Sour fell 15 cents at a midpoint of a $2.75 discount and was seen bid and offered between a $2.85 and $2.65 a barrel discount to U.S. crude futures ?

* WTI Midland fell 10 cents at a midpoint of a $1.95 premium and was seen bid and offered between a $1.85 and $2.05 a barrel premium to U.S. crude futures ?

* West Texas Sour fell 60 cents at a midpoint of a 55-cent discount and was seen bid and offered between a discount of $1.15?? and 5-cent a barrel premium to U.S. crude futures ?

* WTI at East Houston , also known as MEH, traded between a $2.15 and $2.35 a barrel premium to U.S. crude futures ?

* ICE Brent March futures fell 41 cents to settle at $84.49 a barrel on Tuesday.

* WTI March crude futures rose 97 cents to settle at $78.87 a barrel on Tuesday.

* The Brent/WTI spread narrowed $1.38 to minus $5.62, after hitting a high of minus $5.62 and a low of minus $7.10. (Reporting by Stephanie Kelly in New York; Editing by Josie Kao)

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