U.S. Mars Sour cash crude differentials eased on Friday, dealers said, after it gained this week to an over three-year high after the Biden administration bought 3.2 million barrels of oil for the Strategic Petroleum Reserve.
The Biden administration is slowly replenishing the SPR after sales last year pushed the stockpile to its lowest level since 1983.
The SPR refills, along with high export demand for sour crude, have pushed Mars to trade at a premium to U.S. crude oil futures.
Mars Sour WTC-MRS fell 35 cents at a midpoint of a $1.65 premium. The grade on Thursday had firmed to a $2.00 premium, its strongest since May 2020.
Another coastal grade, Light Louisiana Sweet WTC-LLS, weakened 5 cents on Thursday at a midpoint of a $2.85 premium.
Energy services firm Baker Hughes Co BKR.O said U.S. oil rigs, an indicator of future output, fell five to 540 this week.
* Light Louisiana Sweet WTC-LLS for August delivery fell 5 cents at a midpoint of a $2.85 premium and was seen bid and offered between a $2.75 and $2.95 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS fell 35 cents at a midpoint of a $1.65 premium and was seen bid and offered between a $1.55 and $1.75 a barrel premium to U.S. crude futures CLc1
* WTI Midland WTC-WTM was unchanged at a midpoint of a $1.65 premium and was seen bid and offered between a $1.55 and $1.75 a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS was unchanged at 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 CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.75 and $1.95 a barrel premium to U.S. crude futures CLc1
* ICE Brent September futures LCOc1 rose $1.95 to settle at $78.47 a barrel
* WTI August crude CLc1 futures rose $2.06 to settle at $73.86 a barrel
* The Brent/WTI spread WTCLc1-LCOc1 last narrowed to minus $4.69, after hitting a high of minus $4.65 and a low of minus $4.80.
Source: Reuters (Reporting by Stephanie Kelly in New York, Editing by Marguerita Choy)