US Cash Crude-Crude grades largely unchanged as Trump pledges to grow oil output

Reuters
07 Feb
US Cash Crude-Crude grades largely unchanged as Trump pledges to grow oil output

By Amanda Stephenson

Feb 6 (Reuters) - U.S. physical crude grades were largely unchanged on Thursday, dealers said, as President Donald Trump repeated a pledge to raise U.S. oil production.

Growth in oil output from the U.S. Permian basin, the country's top oilfield, is expected to slow by at least 25% this year, energy executives said on Thursday, despite Trump's vow to maximize production.

Oil prices were under pressure from swelling U.S. crude inventories. Benchmarks fell 2% on Wednesday after U.S. government data showed domestic crude stockpiles rose by 8.7 million barrels last week, well above analysts' expectations of a 2 million-barrel increase.

Macquarie analysts said they expect another large build in U.S. crude stocks this week.

The U.S. Treasury said it is imposing new sanctions on a few individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to boost pressure on Tehran.

And U.S. refiner Delek DK.N has the option to run more light, sweet crude oil if it is economical to do so, CEO Avigal Soreq said, amid tariff uncertainty threatening supplies of heavy sour grades from Canada and Mexico.

* Light Louisiana Sweet WTC-LLS for March delivery was unchanged at a midpoint of a $3.05 premium and was seen bid and offered between a $2.90 and $3.20 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS was unchanged at a midpoint of a $1.05 premium and was seen bid and offered between a 90-cent and $1.20 a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM was unchanged at a midpoint of a $1.10 premium and was seen bid and offered between a 90-cent and $1.30 a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS rose 25 cents at a midpoint of a 55-cent discount and was seen bid and offered between a 75-cent and 35-cent discount to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.30 and $1.70 a barrel premium to U.S. crude futures CLc1

* ICE Brent April futures LCOc1 fell 32 cents to settle at $74.29 a barrel

* WTI March crude CLc1 futures fell 42 cents to settle at $70.61 a barrel

* The Brent/WTI spread WTCLc1-LCOc1 widened 7 cents to last trade at minus $3.94, after hitting a high of minus $3.78 and a low of minus $3.94.

(Reporting by Amanda Stephenson in Calgary;Editing by Marguerita Choy)

((amanda.stephenson@thomsonreuters.com))

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