US Cash Crude-Mars strengthens further after contamination issue resolved
July 24 (Reuters) - Cash price differentials for Mars Sour strengthened on Thursday, dealers said, after oil producer Chevron CVX.N said this week that zinc levels in the grade's production stream are now within expected levels after some contamination was identified in recent weeks.
The start-up of an offshore well increased the levels of zinc in Mars crude earlier this month, leading to tightening crude supplies in the key Gulf Coast refining hub and prompting the U.S. government to release barrels from its emergency stockpile.
That pushed prices for Mars to as low as a $1.40 discount to U.S. crude futures CLc1 on Monday, the weakest since October 2024.
Other grades were little changed on the second day of the typically more volatile roll trading period.
The three-day roll trade period begins on the session after the expiration of the front-month U.S. crude futures' contract CLc1. Traders use it to square positions.
* Light Louisiana Sweet WTC-LLS for August delivery was little changed at a midpoint of a $2.60 premium and was seen bid and offered between a $2.40 and $2.80 a barrel premium to U.S. crude futures CLc1
* Mars Sour WTC-MRS strengthened 15 cents at a midpoint of a $1.10 discount and was seen bid and offered between a $1.20 and $1.00 a barrel discount to U.S. crude futures CLc1
* WTI Midland WTC-WTM was little changed at a midpoint of a 5-cent premium and was seen bid and offered between a discount of 5 cents and 15-cent a barrel premium to U.S. crude futures CLc1
* West Texas Sour WTC-WTS was little changed at a midpoint of a 70-cent discount and was seen bid and offered between a 90-cent and 50-cent a barrel discount to U.S. crude futures CLc1
* WTI at East Houston WTC-MEH, also known as MEH, traded between a 25-cent and 45-cent a barrel premium to U.S. crude futures CLc1
* ICE Brent September futures LCOc1 rose 67 cents to settle at $69.18 a barrel
* WTI September crude CLc1 futures rose 78 cents to settle at $66.03 a barrel
* The Brent/WTI spread WTCLc1-LCOc1 narrowed 12 cents to last trade at minus $3.14, after hitting a high of minus $3.12 and a low of minus $3.25
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