U.S. crude oil grades broadly rose on Friday, dealers said, as refining capacity increased and the rig count fell, indicating lower future supply.
U.S. energy firms this week cut the number of oil and natural gas rigs operating to the lowest since January 2022, energy services firm Baker Hughes said in its closely followed report on Friday.
Oil rigs fell by four to 488 this week.
On the refining side, U.S. oil refiners are expected to have about 97,000 barrels per day (bpd) of capacity offline in the week ending Friday, increasing available refining capacity by 85,000 bpd, research company IIR Energy said on Friday.
Offline capacity is expected to fall to 92,000 bpd in the week ending June 21 and to 85,000 bpd in the subsequent week.
However applying some pressure, Marathon Petroleum’s MPC.N 68,000 barrel per day crude oil refinery went under maintenance earlier this month, a state regulator said during a press conference on Friday.
All units at the Mandan refinery are currently under maintenance, according to Justin J. Kringstad, director of the North Dakota pipeline authority.
Light Louisiana Sweet for July delivery gained 7 cents at a midpoint of a $2.92 premium and was seen bid and offered between a $2.85 and $3.00 a barrel premium to U.S.
Mars Sour WTC-MRS fell 5 cents at a midpoint of a 70-cent premium and was seen bid and offered between a 60-cent and 80-cent a barrel premium to U.S.
WTI Midland WTC-WTM gained 15 cents at a midpoint of a $1 premium and was seen bid and offered between a 90-cent and $1.10 a barrel premium to U.S.
West Texas Sour WTC-WTS gained 5 cents at a midpoint of a 25-cent premium and was seen bid and offered between parity and 50-cent a barrel premium to U.S.
WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.40 and $1.60 a barrel premium to U.S.
ICE Brent August futures LCOc1 fell 13 cents to settle at $82.62 a barrel on Friday.
WTI July crude CLc1 futures fell 17 cents to settle at $78.45 a barrel on Friday.
The Brent/WTI spread WTCLc1-LCOc1 widened 3 cents to minus $4.49, after hitting a high of minus $4.49 and a low of minus $4.62.
Source: Reuters (Reporting by Georgina McCartney in Houston; Editing by Cynthia Osterman)