U.S. cash crude differentials were mixed on Friday, dealers said, on the first day of March trading as markets returned to normal trading after a volatile roll period.
WTI Midland rose 40 cents to its highest this year, while WTI at East Houston WTC-MEH, also known as MEH, rose 35 cents. Meanwhile, Mars eased 10 cents to its lowest since early November.
Friday marked the first day of trade for deliveries in March. The three day roll period is used by traders to adjust crude slates and manage exposure, resulting in more volatile trading.
Meanwhile, U.S. crude’s discount to the international benchmark Brent WTCLc1-LCOc1 widened to as much as minus $5.65 a barrel, the widest in 10 day, after touching its lowest since December on Thursday.
Oilfield service firm Baker Hughes said U.S. energy firms this week added two oil rigs, an indicator of future output, pushing the figure up to 499.
Globally, escalating attacks by Yemen’s Houthi rebels on vessels transiting the Red Sea, including a hit on a fuel tanker operated on behalf of trading firm Trafigura, worried investors about supply disruptions.
* Light Louisiana Sweet WTC-LLS for February delivery gained 60 cents at a midpoint of a $2.45 premium and was seen bid and offered between a $2.25 and $2.65 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS gained 10 cents at a midpoint of a 50-cent discount and was seen bid and offered between a 75-cent and 25-cent a barrel discount to U.S. crude futures CLc1
* WTI Midland WTC-WTM fell 60 cents at a midpoint of a $1.4 premium and was seen bid and offered between a $1.20 and $1.60 a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS was unchanged at a midpoint of a 35-cent premium and was seen bid and offered between a discount of 10 cents and 80-cent a barrel premium to U.S. crude futures CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.50 and $2.00 a barrel premium to U.S. crude futures CLc1
* ICE Brent March futures LCOc1 rose $1.12 to settle at $83.55 a barrel on Friday.
* WTI March crude CLc1 futures rose 65 cents to settle at $78.01 a barrel on Friday.
* The Brent/WTI spread WTCLc1-LCOc1 widened 58 cents to minus $5.65, after hitting a high of minus $5.12 and a low of minus $5.65.
Source: Reuters (Reporting by Arathy Somasekhar in Houston; Editing by David Gregorio)