US Cash Crude-Grades little changed as WTI/Brent spread holds steady
U.S. cash crude grades remained mostly unchanged as the WTI/Brent spread held steady at minus $4.01. WTI Midland and WTI at East Houston gained 5 cents each, while Mars Sour was unchanged. U.S. crude, gasoline, and distillate stocks rose last week, adding to oversupply fears. Crude inventories increased by 574,000 barrels, gasoline stocks by 4.52 million barrels, and distillate stockpiles by 2.1 million barrels. Refining capacity is expected to increase by 133,000 bpd. Brent February futures rose 22 cents to $62.67 a barrel, and WTI January futures rose 31 cents to $58.95 a barrel.
HOUSTON, Dec 3 (Reuters) - U.S. cash crude grades were little changed on Wednesday, dealers said, as the spread between U.S. West Texas Intermediate crude and global benchmark Brent held steady.
WTI Midland and WTI at East Houston, also known as MEH, gained 5 cents each, while Mars Sour was unchanged.
The spread between WTI and Brent settled at minus $4.01. A wider spread, typically larger than minus $4, incentivizes exports.
U.S. crude, gasoline and distillate stocks rose last week, the Energy Information Administration said on Wednesday, adding to fears of an oversupply.
Crude inventories rose by 574,000 barrels in the week ended November 28, the EIA said, compared with analysts’ expectations in a Reuters poll for an 821,000-barrel draw.
Gasoline stocks rose by 4.52 million barrels, far exceeding analysts’ expectations in a Reuters poll for a 1.5 million-barrel build. Distillate stockpiles, which include diesel and heating oil, rose by 2.1 million barrels, which also surpassed expectations for a 0.7 million-barrel rise.
The data was delayed and did not publish at 10:30 a.m. ET (1530 GMT) as expected, with the agency citing technical difficulties.
In refining news, U.S. oil refiners are expected to have about 54,000 barrels per day of capacity offline in the week ending December 5, increasing available refining capacity by 133,000 bpd, research company IIR Energy said on Wednesday.
- Light Louisiana Sweet for January delivery gained 20 cents to a midpoint of a $1.95 premium and was seen bid and offered between a $1.40 and $2.50 a barrel premium to U.S. crude futures (CLc1)
* Mars Sour was unchanged 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 firmed 5 cents to a midpoint of a 65-cent premium and was seen bid and offered between a 50-cent and 80-cent a barrel premium to U.S. crude futures (CLc1)
- West Texas Sour eased 15 cents to a midpoint of a 95-cent discount and was seen bid and offered between a $1.10 and 80-cent a barrel discount to U.S. crude futures (CLc1)
- WTI at East Houston, also known as MEH, traded between a 75-cent and $1.05 a barrel premium to U.S. crude futures (CLc1)
- ICE Brent February futures (LCOc1) rose 22 cents to settle at $62.67 a barrel on Wednesday.
- WTI January crude (CLc1) futures rose 31 cents to settle at $58.95 a barrel on Wednesday.
- The Brent/WTI spread narrowed 6 cents to last trade at minus $4.01, after hitting a high of minus $3.99 and a low of minus $4.08.
