US Cash Crude-Grades slightly softer as market weighs Trump talks with Iran
NEW YORK, March 23 (Reuters) - Premiums for U.S. cash crude grades were steady to softer on Monday during the roll-trading period, dealers said, as fears of prolonged supply disruptions eased after President Donald Trump said the U.S. was in talks with Tehran about ending the U.S.-Israeli war on Iran.
Traders use a three-day roll period to adjust their crude slates, square up positions and net out exposures following the expiration of the U.S. crude futures contract.
Prices to roll U.S. crude oil futures positions from April to May traded at plus 90 cents a barrel.
Trump said on Monday there have been talks between the United States and Iran over the past day in which the two sides had "major points of agreement," adding that a deal could be done soon to settle the war.
Some grades fell as research company IIR Energy said that U.S. oil refiners are expected to have about 731,000 barrels per day of capacity offline in the week ending March 23, increasing available refining capacity by 94,000 bpd.
Capping some of the declines in cash crude prices, U.S. Energy Secretary Chris Wright told CNBC on Monday that the United States was “highly unlikely” to release additional oil from its Strategic Petroleum Reserve to calm energy markets.
Light Louisiana Sweet for April delivery fell $2.25 to a midpoint of a $3.25 premium and was seen bid and offered between a $3.00 and $3.50 a barrel premium to U.S. crude futures CLc1
Mars Sour stayed at a midpoint of a $7 premium and was seen bid and offered between a $6.75 and $7.25 a barrel premium to U.S. crude futures CLc1
WTI Midland fell 75 cents to a midpoint of a $1 premium and was seen bid and offered between a 75-cent and $1.25 a barrel premium to U.S. crude futures CLc1
West Texas Sour fell 75 cents to a midpoint of a $1.50 discount and was seen bid and offered between a $2.50 and 50-cent a barrel discount to U.S. crude futures CLc1
WTI at East Houston , also known as MEH, traded between a $2.25 and $2.65 a barrel premium to U.S. crude futures CLc1
ICE Brent May futures LCOc1 fell $12.25 to settle at $99.94 a barrel on Monday.
WTI May crude CLc1 futures fell $10.10 to settle at $88.13 a barrel.
The Brent/WTI spread narrowed $2.56 to last trade at minus $11.40, after hitting a high of minus $10.82 and a low of minus $14.79.
