Grades were mixed on Friday, dealers said, as domestic supplies are set to slip while refining demand was also expected to fall.
U.S. energy firms this week cut the number of oil and natural gas rigs operating for a sixth week in a row for the first time since September 2023, energy services firm Baker Hughes said in its closely followed report.
The oil and gas rig count, an early indicator of future output, fell by four to 559 in the week to June 6, the lowest since November 2021.
On the demand side, U.S. oil refiners are expected to have about 276,000 barrels per day of capacity offline in the week ending June 6, decreasing available refining capacity by 11,000 bpd, research company IIR Energy said.
Grades also fell after the spread between U.S. West Texas Intermediate and Brent crude futures narrowed to its tightest level since September 2023 during the session, to as little as $2.78 a barrel.
A narrower spread indicates a closed arbitrage window for traders and weaker shipping economics to Europe and Asia. The tighter spread can act as an early indicator that U.S. crude exports will likely fall in the next few weeks, assuming the premium for Brent crude remains weak.
* Light Louisiana Sweet (WTC-LLS) for July delivery fell 3 cents to a midpoint of a $2.75 premium and was seen bid and offered between a $2.65 and $2.85 a barrel premium to U.S. crude futures
* Mars Sour (WTC-MRS) rose 20 cents to a midpoint of a $1.55 premium and was seen bid and offered between a $1.45 and $1.65 a barrel premium to U.S. crude futures
* WTI Midland (WTC-WTM) fell 5 cents to a midpoint of a 60-cent premium and was seen bid and offered between a 50-cent and 70-cent a barrel premium to U.S. crude futures
* West Texas Sour (WTC-WTS) fell 5 cents to a midpoint of parity and was seen bid and offered between a discount of 20 cents and 20-cent a barrel premium to U.S. crude futures
* WTI at East Houston (WTC-MEH), also known as MEH, traded between a 65-cent and 85-cent a barrel premium to U.S. crude futures
* ICE Brent August futures rose $1.13 to settle at $66.47 a barrel
* WTI July crude futures rose $1.21 to settle at $64.58 a barrel
* The Brent/WTI spread (WTCLc1-LCOc1) narrowed 4 cents to last trade at minus $2.82, after hitting a high of minus $2.78 and a low of minus $2.91.
Source: Reuters