US Cash Crude-Mars firms as WTI/Brent remains wide
Sept 12 (Reuters) - Mars gained on Monday to its highest since the end of July, dealers said, as the spread between West Texas Intermediate and Brent stayed wide.
Mars gained 30 cents, while WTI Midland and WTI at East Houston, also known as MEH, were flat.
The spread between Brent and U.S. WTI crude settled at minus $4.44. A spread wider than minus $4 encourages U.S. exports.
On the supply side, U.S. crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Monday.
Four analysts polled by Reuters ahead of weekly inventory data estimated on average that crude inventories fell by about 1.6 million barrels in the week to September 12.
California lawmakers passed a bill over the weekend that would allow the construction of thousands of new oil wells annually in the Golden State in a bid to make oil supply more affordable for refineries and keep fuel prices in check for consumers.
In refining news, U.S. oil refiners are expected to have about 702,000 barrels per day (bpd) of capacity offline in the week ending September 19, decreasing available refining capacity by 117,000 bpd, research company IIR Energy said on Monday.
Light Louisiana Sweet for October delivery eased 30 cents at a midpoint of a $1.70 premium and was seen bid and offered between a $1.55 and $1.85 a barrel premium to U.S. crude futures CLc1
Mars Sour firmed 30 cents to a midpoint of a 40-cent premium and was seen bid and offered between a 20-cent and 60-cent a barrel premium to U.S. crude futures CLc1
WTI Midland was unchanged at a midpoint of a 95-cent premium and was seen bid and offered between a 75-cent and $1.15 a barrel premium to U.S. crude futures CLc1
West Texas Sour gained 5 cents to a midpoint of a 20-cent premium and was seen bid and offered between parity and 40-cent a barrel premium to U.S. crude futures CLc1
WTI at East Houston, also known as MEH, traded between a $1.00 and $1.50 a barrel premium to U.S. crude futures CLc1
ICE Brent November futures LCOc1 rose 45 cents to settle at $67.44 a barrel on Monday.
WTI October crude CLc1 rose 61 cents to settle at $63.30 a barrel on Monday.
The Brent/WTI spread narrowed 13 cents to last trade at minus $4.44, after hitting a high of minus $4.40 and a low of minus $4.56.
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