U.S. cash crude grades strengthened marginally on Friday, as West Texas Intermediate’s discount to global benchmark Brent widened a day after narrowing to its lowest in more than a year.
Mars Sour strengthened 10 cents, while WTI at East Houston WTC-MEH, also known as MEH, and WTI Midland firmed 5 cents each.
The Brent/WTI spread widened 13 cents to minus $3.67, after hitting a high of minus $3.80 and a low of minus $3.80. A wider spread boosts export demand. The previous day, the spread had narrowed to its most in more than a year.
In July, U.S. crude production grew to its highest since November 2019, according to data from the Energy Information Administration.
However, U.S. oil rig count, an indicator of future production, fell by five to 502 this week, their lowest since February 2022. Oil rigs fell for a 10th month in a row in September and for a third straight quarter.
In refining news, Shell SHEL.L shut the crude distillation unit (CDU) on Thursday to begin a planned overhaul at its 227,900 barrel-per-day (bpd) Norco, Louisiana refinery, sources said.
Citgo said its 167,500 barrel-per-day (bpd) Corpus Christi, Texas refinery experienced a brief power outage caused by a third-party supplier at around 3:30 a.m. ET.
* Light Louisiana Sweet for November delivery gained5 cents at a midpoint of a $1.90 premium and was seen bid and offered between a $1.70 and $2.10 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS gained 10 cents at a midpoint of a $1.65 discount and was seen bid and offered between a $1.50 and $1.80 a barrel discount to U.S. crude futures.
* WTI Midland WTC-WTM gained 5 cents at a midpoint of a 80-cent premium and was seen bid and offered between a 60-cent and $1.00 a barrel premium to U.S. crude futures.
* West Texas Sour WTC-WTS gained 80 cents at a midpoint of a 45-cent discount and was seen bid and offered between a 70-cent and 20-cent a barrel discount to U.S. crude futures.
* WTI at East Houston WTC-MEH, also known as MEH, traded between a 80-cent and $1.10 a barrel premium to U.S. crude futures CLc1
* ICE Brent November futures LCOc1 fell 7 cents to settle at $95.31 a barrel on Friday.
* WTI November crude CLc1 futures fell 92 cents to settle at $90.79 a barrel on Friday.
* The Brent/WTI spread WTCLc1-LCOc1 widened 13 cents to minus $3.67, after hitting a high of minus $3.80 and a low of minus $3.80.
Source: Reuters (Reporting by Arathy Somasekhar in Houston; Editing by David Gregorio)