US Cash Crude-Midland, Mars trade at premium after roll period
June 26 (Reuters) - Cash prices for WTI Midland WTC-WTM and Mars Sour WTC-MRS on Thursday switched to trade at a premium from a discount to U.S. crude futures as dealers began to trade against the August contract.
Both grades strengthened despite the U.S. crude's discount to the international benchmark Brent narrowing to $2.44 a barrel, the narrowest since May 2022. A narrower discount discourages foreign buying of U.S. grades.
Mars Sour WTC-MRS strengthened $1.85 at a midpoint of a $1.35 premium, while WTI Midland WTC-WTM strengthened 35 cents at a midpoint of a 20-cent premium.
The two grades had traded at a discount to futures during the three-day roll trading period, a typically more volatile period during which traders square their positions.
Oil futures edged higher on Thursday as crude inventories in the United States fell on higher demand as summer driving season ramped up, while concerns over Middle East supply risks eased, offsetting some gains. O/R
* Light Louisiana Sweet WTC-LLS for August delivery was little changed at a midpoint of a $2.30 premium and was seen bid and offered between a $2.20 and $2.40 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS strengthened $1.85 at a midpoint of a $1.35 premium and was seen bid and offered between a $1.25 and $1.45 a barrel premium to U.S. crude futures CLc1
* WTI Midland WTC-WTM strengthened 35 cents at a midpoint of a 20-cent premium and was seen bid and offered between a 10-cent and 30-cent a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS was little changed at a midpoint of a 65-cent discount and was seen bid and offered between a 75-cent and 55-cent a barrel discount to U.S. crude futures CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between a 35-cent and 55-cent a barrel premium to U.S. crude futures CLc1
* ICE Brent August futures LCOc1 rose 5 cents to settle at $67.73 a barrel
* WTI August crude CLc1 futures rose 32 cents to settle at $65.24 a barrel
* The Brent/WTI spread WTCLc1-LCOc1 narrowed 27 cents to last trade at minus $2.49, after hitting a high of minus $2.44 and a low of minus $2.75
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