The Organization of the Petroleum Exporting Countries and their allies including Russia announced on Sunday further production target cuts of about 1.16 million barrels per day (bpd) from May through the rest of the year. The pledges will bring the total volume of cuts by the group known as OPEC+ since November to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand. The cuts would likely spur demand for U.S. crude exports as Middle East sour grades become more expensive, traders and analysts said.
Mars Sour gained half a dollar at a midpoint of a $1.40 discount on Monday, and West Texas Sour gained 20 cents at a midpoint of a $1.15 discount. U.S. crude futures' discount to international benchmark Brent widened, hitting a high of minus $4.03 and a low of minus $4.65. A wider spread makes U.S.-linked crudes more attractive to foreign buyers.
Oil benchmarks jumped 6% on Monday, the day after the OPEC+
group jolted markets with plans to cut more production, raising
fears of tightening supplies while some warned of reduced demand
if oil refiners flinch at paying higher prices for crude.
* Light Louisiana Sweet for May delivery gained 10
cents at a midpoint of a $2.05 premium and was seen bid and
offered between a $1.9 and $2.2 a barrel premium to U.S. crude
futures ?
* Mars Sour gained half a dollar at a midpoint of a
$1.4 discount and was seen bid and offered between a $1.5 and
$1.3 a barrel discount to U.S. crude futures ?
* WTI Midland gained 30 cents at a midpoint of a
95-cent premium and was seen bid and offered between a 85-cent
and $1.05 a barrel premium to U.S. crude futures ?
* West Texas Sour gained 20 cents at a midpoint of a
$1.15 discount and was seen bid and offered between a $2 and
30-cent a barrel discount to U.S. crude futures ?
* WTI at East Houston , also known as MEH, traded
between a $1.05 and $1.25 a barrel premium to U.S. crude futures ?
* ICE Brent June futures rose $5.04 to settle at
$84.93 a barrel?.
* WTI May crude futures rose $4.75 to settle at $80.42
a barrel?.
* The Brent/WTI spread widened, hitting a high
of minus $4.03 and a low of minus $4.65.
(Reporting by Stephanie Kelly
Editing by Marguerita Choy)
