US Cash Crude-Grades little changed after OPEC decides to expedite output hikes

Reuters
05-06
US Cash Crude-Grades little changed after OPEC decides to expedite output hikes

May 5 (Reuters) - U.S. cash crude grades were little changed on Monday, dealers said, as traders assessed OPEC's decision to expedite its output hikes.

On Saturday, OPEC+ agreed to further speed up oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day (bpd).

Light Louisiana Sweet WTC-LLS for May delivery weakened 10 cents at a midpoint of a $2.15 premium, while other grades were broadly little changed.

In December, eight OPEC+ countries that have been implementing the group's most recent output cut of 2.2 million bpd agreed to gradually phase it out in monthly increases of about 138,000 bpd from April 2025.

The June increase from the eight will take the total combined hike for April, May and June to 960,000 bpd, representing a 44% unwinding of the 2.2 million bpd cut, according to Reuters calculations.

Oil futures fell by more than $1 a barrel on Monday to settle at multi-year lows.

In refining, U.S. oil refiners are expected to have about 970,000 barrels per day (bpd) of capacity offline in the week ending May 9, increasing available refining capacity by 504,000 bpd, research company IIR Energy said on Monday.

* Light Louisiana Sweet WTC-LLS for May delivery weakened 10 cents at a midpoint of a $2.15 premium and was seen bid and offered between a $2.00 and $2.30 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS was little changed at a midpoint of a $1.4 premium and was seen bid and offered between a $1.30 and $1.5 a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM was little changed at a midpoint of a 70-cent premium and was seen bid and offered between a 60-cent and 80-cent a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS was little changed at a midpoint of a 20-cent discount and was seen bid and offered between a discount of 65 cents and 25-cent a barrel premium to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a 80-cent and $1.00 a barrel premium to U.S. crude futures CLc1

* ICE Brent July futures LCOc1 fell $1.06 to settle at $60.23 a barrel

* WTI June crude CLc1 futures fell $1.16 to settle at $57.13 a barrel

* The Brent/WTI spread WTCLc1-LCOc1 widened to last trade at minus $3.49, after hitting a high of minus $3.42 and a low of minus $3.53.

(Reporting by Stephanie Kelly in New York; Editing by David Gregorio)

((Stephanie.Kelly@tr.com))

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