US Cash Crude-Sour grades rise as domestic refinery demand to grow
Sept 3 (Reuters) -Physically traded domestic U.S. crudes were mixed on Tuesday, dealers said, with sour grades drawing support from an expected uptick in refinery demand.
Valero Energy Corp VLO.N began restarting the large crude distillation unit (CDU) at its 360,000 barrel-per-day (bpd) Port Arthur, Texas refinery on Tuesday, said people familiar with plant operations.
The unit was shut by a fire that burned for most of Sunday, according to the sources.
Meanwhile, U.S. oil refiners are expected to have about 263,000 barrels per day (bpd) of capacity offline in the week ending Sept. 6, increasing available refining capacity by 162,000 bpd, research company IIR Energy said on Monday.
Offline capacity is expected to fall to 559,000 bpd in the week ending Sept. 13, IIR added.
And on the supply side, U.S. crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Tuesday.
The poll was conducted ahead of reports from the American Petroleum Institute industry group, due at 4:30 p.m. EDT (2030 GMT) on Wednesday.
* Light Louisiana Sweet WTC-LLS for October delivery fell 5 cents at a midpoint of a $1.85 premium and was seen bid and offered between a $1.75 and $1.95 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS gained 80 cents at a midpoint of a 70-cent discount and was seen bid and offered between a 80-cent and 60-cent a barrel discount to U.S. crude futures CLc1
* WTI Midland WTC-WTM was unchanged at a midpoint of a 75-cent premium and was seen bid and offered between a 65-cent and 85-cent a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS gained 7 cents at a midpoint of a 17-cent premium and was seen bid and offered between parity and 35-cent a barrel premium to U.S. crude futures CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.25 and $1.45 a barrel premium to U.S. crude futures CLc1
* ICE Brent November futures LCOc1 fell $3.77 to settle at $73.75 a barrel on Tuesday.
* WTI October crude CLc1 futures fell $3.21 to settle at $70.34 a barrel on Tuesday.
* The Brent/WTI spread WTCLc1-LCOc1 narrowed last to minus $4.28, after hitting a high of minus $4.11 and a low of minus $4.32.
Reporting by Georgina McCartney in Houston; Editing by Stephen Coates
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