U.S. cash crude grades firmed marginally on Friday, dealers said, steadying after a rollercoaster week of uncertainty in the market around U.S. tariffs on Mexico and Canada.
U.S. President Donald Trump imposed a 25% tariff on imports from Mexico and Canada, with an exception of a 10% levy on Canadian oil, which took effect overnight on Tuesday.
Then on Thursday Trump suspended the tariffs on most goods from Canada and Mexico, in what was the latest twist in a fluctuating trade policy that has whipsawed markets and fanned worries about inflation and growth.
Earlier this week, Mars Sour (WTC-MRS) had surged in one of the first indications that Trump’s tariffs were disrupting the global oil trade.
The coastal grade, which is an attractive alternative to Mexican grade Isthmus, firmed 5 cents on Friday at a midpoint of a $1.65 premium after easing since Tuesday.
Light Louisiana Sweet (WTC-LLS), which had also eased throughout this week after being bid up on Tuesday, also firmed slightly on Friday, to a midpoint of a $3.88 premium.
Amid tariff news, dealers also will need to focus on Russia supply, after Trump said in a post on Truth Social that he was “strongly considering” sanctions on Russian banks and tariffs on Russian products because its armed forces continue attacks in Ukraine.
An indication of future oil production, U.S. energy firms this week cut the number of oil and natural gas rigs operating for the first time in six weeks, energy services firm Baker Hughes said on Friday.
Light Louisiana Sweet (WTC-LLS) for April delivery firmed 13 cents at a midpoint of a $3.88 premium and was seen bid and offered between a $3.50 and $4.25 a barrel premium to U.S. crude futures
Mars Sour (WTC-MRS) firmed 5 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
WTI Midland (WTC-WTM) firmed 5 cents at a midpoint of a $1.20 premium and was seen bid and offered between a $1.10 and $1.30 a barrel premium to U.S. crude futures
West Texas Sour (WTC-WTS) firmed 3 cents at a midpoint of a 83-cent premium and was seen bid and offered between a 70-cent and 95-cent a barrel premium to U.S. crude futures
WTI at East Houston (WTC-MEH), also known as MEH, traded between a $1.35 and $1.55 a barrel premium to U.S. crude futures
ICE Brent May futures rose 90 cents to settle at $70.36 a barrel
WTI April crude futures rose 68 cents to settle at $67.04 a barrel
The Brent/WTI spread (WTCLc1-LCOc1) widened to last trade at minus $3.60, after hitting a high of minus $3.48 and a low of minus $3.61.
Source: Reuters