US Cash Crude-Sour grades fall as US crude stocks rise, Middle East producers export more

Reuters
Mar 25
US Cash Crude-Sour grades fall as US crude stocks rise, Middle East producers export more

NEW YORK, March 24 (Reuters) - Premiums for physically traded U.S. sour grades narrowed on Tuesday in the second full day of roll trading, dealers said, after data showed a weekly jump in crude stocks and Middle East producers ramped up exports of similar grades.

U.S. crude, gasoline and distillate stocks rose last week, market sources said, citing American Petroleum Institute figures on Tuesday. Crude stocks rose by 2.35 million barrels in the week ended March 20, the sources said on condition of anonymity.

On the demand side, Valero Energy VLO.N completed the temporary shutdown of its 380,000-barrel-per-day oil refinery in Port Arthur, Texas, on Tuesday following a Monday night explosion and fire in a diesel hydrotreater unit, people familiar with the plant operations said.

On the supply side, crude oil exports from Saudi Arabia's Red Sea Yanbu port rose to nearly 4 million barrels per day last week, a sharp increase from export levels before the Iran war broke out, shipping data shows.

In the United Arab Emirates, which has also relied on its own pipeline to divert crude shipments, crude exports from the port of Fujairah on the Gulf of Oman have risen too.

Prices to roll U.S. crude oil futures positions from April to May traded at plus $1.20 a barrel on Tuesday. Traders use a three-day roll period to adjust their crude slates, square up positions and net out exposures following the expiration of the U.S. crude futures contract.

  • Light Louisiana Sweet for April delivery stayed 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

  • Mars Sour fell $2 to a midpoint of a $5 premium and was seen bid and offered between a $4.75 and $5.25 a barrel premium to U.S. crude futures CLc1

  • WTI Midland fell 25 cents to a midpoint of a 75-cent premium and was seen bid and offered between a 55-cent and 95-cent a barrel premium to U.S. crude futures CLc1

  • West Texas Sour fell 50 cents to a midpoint of a $2.00 discount and was seen bid and offered between a $2.20 and $1.80 a barrel discount to U.S. crude futures CLc1

  • WTI at East Houston , also known as MEH, traded between a $1.40 and $1.80 a barrel premium to U.S. crude futures CLc1

  • ICE Brent May futures LCOc1 rose $4.55 to settle at $104.49 a barrel on Tuesday​.

  • WTI May crude CLc1 futures rose $4.22 to settle at $92.35 a barrel on Tuesday​.

  • The Brent/WTI spread narrowed 2 cents to last trade at minus $11.79, after hitting a high of minus $10.65 and a low of minus $12.50.

(Reporting by Siddharth Cavale in New York; Editing by Matthew Lewis)

((Siddharth.Cavale@tr.com))

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