U.S. cash crude grades largely eased on Friday after a rally over the last week that saw multi-month highs, dealers said.
Prices had been gaining on higher demand for U.S. exports. Meanwhile, U.S. crude’s discount to the Brent international benchmark widened to as much as $6.00 on Friday, the most since Dec. 1.
A wider discount typically makes U.S.-linked grades more attractive to foreign buyers.
Despite the discount, cash grades could not hold on to the steady increases from the last week.
West Texas Sour fell 85 cents at a midpoint of a 50-cent discount after gaining on Thursday to its highest since Dec. 21.
Meanwhile, Light Louisiana Sweet for February delivery fell half a dollar at a midpoint of a $3.25 premium, while Mars Sour was unchanged at a midpoint of a $2.5 discount. Both grades strengthened on Thursday to their highest since mid-November.
In an indication of future supply, U.S. energy firms cut the most oil rigs in a week since September 2021, energy services firm Baker Hughes Co said in its closely followed report on Friday.
Oil rigs fell 10 to 613, their lowest since November, while gas rigs rose six to 156, in their biggest weekly rise since February.
Money managers raised their net long U.S. crude futures and options positions in the week to Jan. 17 by 22,739 contracts to 166,236, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Light Louisiana Sweet for February delivery fell half a dollar at a midpoint of a $3.25 premium and was seen bid and offered between a $2.5 and $4 a barrel premium to U.S. crude futures
Mars Sour was unchanged at a midpoint of a $2.5 discount and was seen bid and offered between a $2.6 and $2.4 a barrel discount to U.S. crude futures
WTI Midland fell 20 cents at a midpoint of a $1.25 premium and was seen bid and offered between a $1.15 and $1.35 a barrel premium to U.S. crude futures
West Texas Sour fell 85 cents at a midpoint of a 50-cent discount and was seen bid and offered between a discount of $1 and parity to U.S. crude futures
WTI at East Houston, also known as MEH, traded between a $1.5 and $1.7 a barrel premium to U.S. crude futures
ICE Brent March futures rose $1.47 to settle at $87.63 a barrel on Friday.
WTI February crude futures rose 98 cents to settle at $81.31 a barrel on Friday.
The Brent/WTI spread widened 44 cents to minus $5.99, after hitting a high of minus $5.40 and a low of minus $6.00.
Source: Reuters