off-the-wire

U.S. Cash Crude-Grades give mixed signals as traders weigh China recovery

Kitco Media
By Reuters
Published:
Updated:
Reuters
Feb 16 (Reuters) - U.S. physical crude oil grades showed more signs of weakness on Thursday as traders received mixed signals about China's economic recovery. Saudi Arabia's top energy official said, in an interview published by Energy Aspects, that the current OPEC+ deal on oil output would be locked in until the end of the year, adding he remained cautious on Chinese demand forecasts. OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed in October to cut oil production targets by 2 million barrels per day (bpd) until the end of 2023. And while U.S. data suggested the U.S. jobs market remained robust, a gauge of manufacturing in the mid-Atlantic region unexpectedly plunged. Mars Sour crude, however, strengthened 30 cents to a midpoint of a $1.00 discount amid choppy trade. Inland grade WTI Midland crude weakened 10 cents to a midpoint of a $2.45 premium to U.S. crude futures.


In what could be good news for WTI oil prices, the North Dakota State Industrial Commission reported weakness from Bakken shale fields, where preliminary production data for December showed a 12.9% decline vs November levels, according to analysts at Roth MKM. December production was 956,300 barrels per day, down from November's level of about 1.1 million barrels per day.
* Light Louisiana Sweet for March delivery fell 5 cents to a midpoint of $3.5 and traded between $3.40 and $3.60 a barrel premium to U.S. crude futures .


* Mars Sour rose 30 cents to a midpoint of minus $1.00 and traded between minus $1.20 and minus $1.10 a barrel discount to U.S. crude futures .


* WTI Midland fell 10 cents to a midpoint of $2.45 and traded between $2.35 and $2.55 a barrel premium to U.S. crude futures .


* West Texas Sour fell 45 cents to a midpoint of minus 35 cents and traded between minus 45 cents and minus 25 cents a barrel discount to U.S. crude futures .


* WTI at East Houston, also known as MEH, traded at $2.60 over WTI.


* ICE Brent April futures fell 24 cents to settle at $85.14 a barrel.
* WTI March crude futures fell 10 cents to settle at $78.49 a barrel.
* The Brent/WTI spread narrowed 15 cents to settle at minus $6.40, after hitting a high of minus $6.36 and a low of minus $6.53.
(Reporting by Tim McLaughlin; Editing by Diane Craft)

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