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
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
