US Cash Crude-Mars firms to its highest level in over 4 years
Dec 18 (Reuters) -Mars Sour strengthened to its highest level in more than four years on Wednesday, dealers said, on concerns of tight heavy crude supply along the U.S. Gulf Coast.
Mars firmed $1.15 to a premium of $3.25 to U.S. crude futures, its highest since April 2020, when COVID-19 and a price war pushed down U.S. crude futures massively.
Mars has been trending higher in recent days, helped by strong refinery and export demand.
U.S. crude exports rose by 1.8 million barrels per day (bpd) last week to 4.89 million bpd in the week ending Dec. 13, the Energy Information Administration (EIA) said on Wednesday.
U.S. crude fell by 934,000 barrels to 421 million barrels in the week, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. Distillate inventories fell, while gasoline stockpiles rose.
The spread between U.S. West Texas Intermediate and Brent crude settled at its narrowest in more than a year. It eased for a fourth straight session to as little as minus $3.35 per barrel and closed at minus $3.38.
A narrower spread between the global benchmark and WTI, particularly under minus $4, typically discourages transatlantic demand.
* Light Louisiana Sweet WTC-LLS for January delivery was unchanged at a midpoint of a $3.50 premium and was seen bid and offered between a $3.25 and $3.75 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS firmed $1.15 at a midpoint of a $3.25 premium and was seen bid and offered between a $3.00 and $3.50 a barrel premium to U.S. crude futures CLc1
* WTI Midland WTC-WTM strengthened 5 cents to a midpoint of an 80-cent premium and was seen bid and offered between a 60-cent and $1.00 a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS gained 5 cents to a midpoint of a 40-cent discount and was seen bid and offered between a 60-cent and 20-cent a barrel discount to U.S. crude futures CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between an 80-cent and $1.20 a barrel premium to U.S. crude futures CLc1
* ICE Brent February futures LCOc1 rose 20 cents to settle at $73.39 a barrel on Wednesday
* WTI January crude CLc1 futures remained unchanged at $70.58 a barrel on Wednesday
* The Brent/WTI spread WTCLc1-LCOc1 narrowed 16 cents to last trade at minus $3.38, after hitting a high of minus $3.35 and a low of minus $3.55
Reporting by Arathy Somasekhar in Houston; Editing by Jamie Freed
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