US Cash Crude-Coastal grades firm on hopes for higher demand sour crude

Kitco Media
By Reuters
Published:
Updated:
Reuters
April 13 (Reuters) - Coastal crude grades strengthened on Wednesday, dealers said, as demand for higher sulfur sour crude is expected to remain strong. Mars gained 30 cents, while Thunder Horse strengthened 20 cents. Light Sweet WTI Midland eased 10 cents while WTI at East Houston, called MEH, also weakened 10 cents. Production cuts by the OPEC+ group is likely to increase Asia's demand for Atlantic basin crudes, analysts have said.


Still, exports are likely to be hit by narrow Brent/WTI spread. The spread hovered near its narrowest this year at minus $4.05. An arb stronger than minus $6.00 hurts U.S. exports. Meanwhile, release of sweet crude oil from the U.S. emergency reserve has hurt WTI Midland prices.


OPEC on Thursday flagged downside risks to summer oil demand, adding oil inventories looked more ample and global growth faced a number of challenges.


* Light Louisiana Sweet for May delivery rose 25 cents to a midpoint of a $2.15 premium and was seen bid and offered between a $2 and a $2.30 a barrel premium to U.S. crude futures
* Mars Sour gained 30 cents at a midpoint of a 75-cent discount and was seen bid and offered between a $1 and an 50-cent a barrel discount to U.S. crude futures
* WTI Midland eased 10 cents to a midpoint of a 50-cent premium and was seen bid and offered between a 25-cent and a 75-cent a barrel premium to U.S. crude futures
* West Texas Sour fell $1.25 to a midpoint of a 35-cent discount and was seen bid and offered between a 50-cent and a 20-cent a barrel discount to U.S. crude futures
* WTI at East Houston , also known as MEH, traded between a 50-cent and an 80-cent a barrel premium to U.S. crude futures
* ICE Brent June futures rose $1.24 to settle at $86.09 a barrel on Tuesday?.


* WTI May crude futures rose $1.10 to settle at $82.16 a barrel on Tuesday?.


* The Brent/WTI spread narrowed to minus $4.07, after hitting a high of minus $4.05 and a low of minus $4.24. (Reporting by Arathy Somasekhar; Editing by Richard Chang)

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