U.S. cash crude prices strengthened for a second straight day on Friday, as the spread between U.S. West Texas Intermediate (WTI) and Brent crude futures widened to above $4 a barrel.
WTI’s spread to Brent WTCLc1-LCOc1 traded as low as minus $4.30, its most in two weeks. A wider spread makes U.S. crude more attractive to foreign buyers.
WTI Midland WTC-WTM gained 15 cents to a $1.55 premium to U.S. crude futures, its highest in a month. WTI at East Houston (MEH) gained 10 cents, while Mars Sour WTC-MRS gained 15 cents.
High prices for sour crude after Saudi Arabia’s plans to cut output has pushed some refiners to snap up some sweet barrels again.
Chinese refiners did not request lower supply volumes for September-loading cargoes despite higher official selling prices (OSPs) set by Saudi Aramco, sources said. Saudi Aramco informed customers in North Asia that they will receive the full volumes of crude oil they requested for September.
Meanwhile, the number of oil rigs, an indicator of future production, held steady at 525 this week, after falling for eight weeks in a row.
* Light Louisiana Sweet WTC-LLS for September delivery gained 15 cents to a midpoint of a $2.55 premium and was seen bid and offered between a $2.30 and $2.80 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS gained 10 cents to a midpoint of a 80-cent premium and was seen bid and offered between a 60-cent and $1 a barrel premium to U.S. crude futures CLc1
* WTI Midland WTC-WTM gained 15 cents to a midpoint of a $1.55 premium and was seen bid and offered between a $1.20 and $1.90 a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS was unchanged at a midpoint of a 85-cent premium and was seen bid and offered between a 70-cent and $1.00 a barrel premium to U.S. crude futures CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.50 and $1.80 a barrel premium to U.S. crude futures CLc1
* ICE Brent October futures LCOc1 rose 41 cents to settle at $86.81 a barrel on Friday.
* WTI September crude CLc1 futures rose 37 cents to settle at $83.19 a barrel on Friday.
* The Brent/WTI spread WTCLc1-LCOc1 widened 6 cents to last trade ar minus $4.16, after hitting a high of minus $4.05 and a low of minus $4.30.
Source: Hellenic Shipping News
