Coastal crude grades largely strengthened on Friday, dealers said, as the U.S. government ramped up sanctions on Venezuelan officials as well as on Russian oil.
Mars gained 15 cents, while Heavy Louisiana Sweet jumped 80 cents.
The United States imposed new sanctions on eight Venezuelan officials, including the recently appointed head of Venezuela’s state oil company PDVSA, Hector Obregon.
The U.S. stopped short of withdrawing previous U.S. authorizations to U.S. oil producer Chevron and several other companies for Venezuela operations. A senior U.S. official said Washington would continue monitoring the situation and could make recommendations to the incoming administration about the future of those licenses.
Meanwhile, U.S. President Joe Biden’s administration imposed its broadest package of sanctions so far targeting Russia’s oil and gas revenues in an effort to give Kyiv and President-elect Donald Trump’s incoming team leverage to reach a deal for peace in Ukraine.
The spread between U.S. West Texas Intermediate and Brent crude widened to as much as minus-$4.01 per barrel, the widest in a month. A spread above minus-$4 typically boosts exports.
In refining news, Motiva Enterprises plans to begin an overhaul of the gasoline-producing fluidic catalytic cracker by Jan. 21 at its 626,000 barrel-per-day Port Arthur, Texas, refinery, people familiar with plant operations said.
The 81,000-bpd FCC3 is scheduled to be shut for nearly two months with restart planned for March 14, the three sources said.
Light Louisiana Sweet (WTC-LLS) for February delivery was unchanged at a midpoint of a $2.50 premium and was seen bid and offered between a $2.25 and $2.75 a barrel premium to U.S. crude futures
Mars Sour (WTC-MRS) firmed 15 cents to a midpoint of a 50-cent premium and was seen bid and offered between a 25-cent and 75-cent a barrel premium to U.S. crude futures
WTI Midland (WTC-WTM) was unchanged at a midpoint of a 85-cent premium and was seen bid and offered between a 70-cent and $1 a barrel premium to U.S. crude futures
West Texas Sour (WTC-WTS) strengthened 5 cents to a midpoint of a 15-cent premium and was seen bid and offered between parity and 30-cent a barrel premium to U.S. crude futures
WTI at East Houston (WTC-MEH), also known as MEH, traded between a 90-cent and $1.30 a barrel premium to U.S. crude futures
ICE Brent March futures rose $2.84 to settle at $79.76 a barrel on Friday.
WTI February crude futures rose $2.65 to settle at $76.57 a barrel on Friday.
The Brent/WTI spread (WTCLc1-LCOc1) widened 23 cents to last trade at minus-$3.91, after hitting a high of minus-$3.69 and a low of minus-$4.01.
Source: Reuters