US Cash Crude-Offshore grades rise as Middle East cuts output
NEW YORK, March 9 (Reuters) - Offshore grades rose on Monday, dealers said, as Middle East producers of similar crudes curbed output due to the throttling of exports caused by the widening conflict in the region.
Saudi oil producer Aramco began cutting output at two of its oilfields, adding to reductions by the United Arab Emirates, Iraq, Kuwait and Qatar as they run out of storage due to the effective closure of the vital Strait of Hormuz since Saturday after the U.S. and Israel attacked Iran.
President Donald Trump's administration is considering reducing oil sanctions on Russia to help cool a surge in global energy prices triggered by the U.S. and Israeli war on Iran, with an announcement possible as soon as Monday, according to three sources familiar with the planning.
U.S. officials in Washington have been discussing with counterparts from the Group of Seven major economies a possible joint release of crude oil from strategic reserves, sources said, speaking on condition of anonymity.
Other options include restricting U.S. exports, intervening in oil futures markets, waiving some federal taxes and lifting requirements under a U.S. law called the Jones Act that domestic fuel move only on U.S.-flagged ships, the sources said.
Light Louisiana Sweet for April delivery rose by $1 to a midpoint of a $9.50 premium and was seen bid and offered at a premium of $9 to $10 a barrel to U.S. crude futures CLc1
Mars Sour rose by $2 to a midpoint of a $13 premium and was seen bid and offered between at a premium of $12 to $14 a barrel to U.S. crude futures CLc1
WTI Midland fell by 60 cents to a midpoint of a 90-cent premium and was seen bid and offered between a premium of 80 cents and $1 a barrel to U.S. crude futures CLc1
West Texas Sour fell by 45 cents to a midpoint of a $1.05 premium and was seen bid and offered between a premium of 90 cents to $1.20 a barrel to U.S. crude futures CLc1
WTI at East Houston, also known as MEH, traded between
a premium of $1.70 to $1.90 a barrel to U.S. crude futures CLc1
ICE Brent May futures LCOc1 rose $6.27 to settle at $98.96 a barrel
WTI April crude CLc1 futures rose $3.87 to settle at $94.77 a barrel
The Brent/WTI spread widened 84 cents to last trade at minus $6.03, after hitting a high of minus $3.16 and a low of minus $9.23 on Monday
