Coastal grade Mars strengthens 5 cents on Friday, dealers said, as the U.S. government said would buy up to 3 million barrels of competing sour crude oil to refill the Strategic Petroleum Reserve.
Mars Sour gained 5 cents to a midpoint of a 65-cent premium to U.S. West Texas Intermediate crude futures.
The announcement comes after The U.S. Department of Energy last week sped up the return of 4 million barrels of oil to the Strategic Petroleum Reserve, from a previous exchange of crude to energy companies.
WTI Midland fell 10 cents at a midpoint of a $1.2 premium.
U.S. West Texas Intermediate’s discount to Brent narrowed to as little as minus $4.37 a barrel, the narrowest since Nov. 21. A narrower discount disincentives buyers abroad from purchasing U.S. oil.
U.S. oil rigs fell two to 503 this week, energy services firm Baker Hughes BKR.O said.
Light Louisiana Sweet for January delivery gained5 cents at a midpoint of a $2.85 premium and was seen bid and offered between a $2.75 and $2.95 a barrel premium to U.S. crude futures.
Mars Sour gained 5 cents at a midpoint of a 65-cent premium and was seen bid and offered between a 50-cent and 80-cent a barrel premium to U.S. crude futures.
WTI Midland fell 10 cents at a midpoint of a $1.2 premium and was seen bid and offered between a $1.00 and $1.40 a barrel premium to U.S. crude futures
West Texas Sour WTC-WTS gained 10 cents at a midpoint of a 40-cent premium and was seen bid and offered between a 30-cent and 50-cent a barrel premium to U.S. crude futures CLc1
WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.15 and $1.45 a barrel premium to U.S. crude futures CLc1
ICE Brent February futures LCOc1 rose $1.79 to settle at $75.84 a barrel on Friday.
WTI January crude futures rose $1.89 to settle at $71.23 a barrel on Friday.
The Brent/WTI spread narrowed 4 cents to minus $4.42, after hitting a high of minus $4.37 and a low of minus $4.63.
Source: Reuters (Reporting by Arathy Somasekhar and Georgina McCartney in Houston; Editing by Diane Craft)