Mars sour crude grade differential strengthened on Friday, dealers said, as the spread between U.S. West Texas Intermediate and Brent widened to its most in more than month.
Mars Sour gained 30 cents, its highest in three weeks, while WTI Midland WTC-WTM and WTI at East Houston WTC-MEH, also known as MEH, gained 5 cents each.
The Brent/WTI spread widened as much as 38 cents to minus $4.58, WTI’s biggest discount to Brent since Aug 28.
A wider spread boosts exports as U.S. grades become more attractive to foreign buyers.
Markets also watched the conflict in the Middle East could widen as Israel began ground raids inside the Gaza Strip, assessing how it could escalate and what it might mean for supplies from nearby countries in the world’s top oil producing region.
U.S. also moved to impose the first sanctions on owners of tankers carrying Russian oil priced above the Group of Seven’s price cap of $60 a barrel.
In refining news, ExxonMobil plans to begin restarting a coker at its 522,500 barrel-per-day (bpd) Baton Rouge, Louisiana refinery over the weekend, sources said.
Pemex began restarting the gasoline-producing fluidic catalytic cracker (FCC) on Friday at its 312,500 barrel-per-day (bpd) Deer Park, Texas refinery, said people familiar with plant operations.
Light Louisiana Sweet for November delivery was unchanged at a midpoint of a $2.35 premium and was seen bid and offered between a $2.20 and $2.50 a barrel premium to U.S. crude futures.
Mars Sour gained 30 cents to a midpoint of a $1.05 discount and was seen bid and offered between a $1.25 and 85-cent a barrel discount to U.S. crude futures.
WTI Midland gained 5 cents to 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.
West Texas Sour gained 10 cents to a midpoint of a 45-cent discount and was seen bid and offered between a 65-cent and 25-cent a barrel discount to U.S. crude futures.
WTI at East Houston, also known as MEH, traded between a 80-cent and $1.20 a barrel premium to U.S. crude futures.
ICE Brent December futures rose $4.89 to settle at $90.89 a barrel on Friday.
WTI November crude futures rose $4.78 to settle at $87.69 a barrel on Friday.
The Brent/WTI spread widened 34 cents to minus $4.54, after hitting a high of minus $4.06 and a low of minus $4.58.
Source: Reuters (Reporting by Arathy Somasekhar; Editing by David Gregorio)