U.S. crude grades are set to see record export demand to Europe and China this month, mainly due to a spread between U.S> crude and Brent. A wider discount, typically above minus $6, prompts more U.S. exports, as U.S.-linked grades become more attractive to foreign buyers. WTI's traded at a minus $5.96 discount to Brent, a high of minus $5.72 and a low $6.13. Open arbitrage (arbs) from U.S. Gulf Coast to Asia will support April U.S exports, research firm Energy Aspects said, while restart of refineries after maintenance season has boosted demand for sour crude.
"Despite surging freight rates, sour arbs to Asia are open, and USGC (US Gulf Coast) sweet arbs to Asia have also opened in recent sessions," Energy Aspects analysts wrote.
On the supply side, brokerage Tudor Pickering and Holt trimmed its U.S. crude oil supply growth forecast to about 500,000 barrels per day from shale in 2023 compared with a prior estimate of about 550,000 bpd.
* Light Louisiana Sweet for April delivery was
unchanged at a midpoint of a $2.90 premium and was bid and
offered between a $2.70 and a $3.10 a barrel premium to U.S.
crude futures .
* Mars Sour firmed 30 cents to trade at a midpoint
of an 75-cent premium and was traded between a 50-cent and an $1
a barrel premium to U.S. crude futures .
* WTI Midland eased 15 cents to a midpoint of a
$1.20 premium and traded between a $1.00 and a $1.40 a barrel
premium to U.S. crude futures .
* West Texas Sour gained 5 cents to a midpoint of
a 15-cent premium and was traded between a flat and a 30-cent a
barrel premium to U.S. crude futures .
* WTI at East Houston, also known as MEH, traded between
$1.25 and $1.65 over WTI.
* ICE Brent May futures rose 82 cents to settle at
$73.79 a barrel.
* WTI April crude futures rose 90 cents to settle at
$67.64 a barrel.
* The Brent/WTI spread narrowed 10 cents to
minus $5.94, after hitting a high of minus $5.72 and a low of
minus $6.13.
(Reporting by Arathy Somasekhar in Houston; Editing by Cynthia
Osterman)
