US Cash Crude-Grades largely down on weakened refinery demand

Reuters
2024.06.20 20:33
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Physical U.S. crude grades fell due to lower refinery utilization. HF Sinclair's refinery in Kansas is running at lower rates due to repairs, weighing on crude demand. U.S. crude inventories fell as exports rose, but refinery crude runs and utilization rates decreased. U.S. crude imports of Canadian crude reached a six-month high. Various crude grades experienced price changes. ICE Brent futures rose, while WTI July crude futures also increased. The Brent/WTI spread narrowed.

June 20 (Reuters) - Physical U.S. crude grades broadly fell on Thursday amid lower domestic refinery utilization, dealers said.

Thursday marked WTI futures’ expiry, signaling the beginning of the volatile roll trading period.

Traders use the three-day roll period to square positions and manage exposure, resulting in more volatile trading.

HF Sinclair’s (DINO.N) 162,000-barrel-per-day (bpd) refinery in El Dorado, Kansas is running at lower rates due to repairs, sources familiar with the matter said, weighing on crude demand.

U.S. crude oil inventories fell last week as exports rose, the Energy Information Administration said.

But refinery crude runs fell by 282,000 barrels per day (bpd) in the week, and refinery utilization rates fell by 1.5 percentage points to 93.5% of total capacity.

Meanwhile, U.S. crude imports of Canadian crude reached a six-month high last week, at 4.137 million barrels, the EIA said.

  • Light Louisiana Sweet (WTC-LLS) for July delivery fell 15 cents at a midpoint of a $3.30 premium and was seen bid and offered between a $3.20 and $3.40 a barrel premium to U.S. crude futures (CLc1)

  • Mars Sour (WTC-MRS) fell 5 cents at a midpoint of a $1.2 premium and was seen bid and offered between a $1.00 and $1.4 a barrel premium to U.S. crude futures (CLc1)

  • WTI Midland (WTC-WTM) fell 5 cents at a midpoint of a 90-cent premium and was seen bid and offered between a 80-cent and $1.00 a barrel premium to U.S. crude futures (CLc1)

  • West Texas Sour (WTC-WTS) gained 5 cents at a midpoint of a 75-cent premium and was seen bid and offered between a 65-cent and 85-cent a barrel premium to U.S. crude futures (CLc1)

  • WTI at East Houston (WTC-MEH) , also known as MEH, traded between a $1.20 and $1.40 a barrel premium to U.S. crude futures (CLc1)

  • ICE Brent August futures (LCOc1) rose 64 cents to settle at $85.71 a barrel

  • WTI July crude (CLc1) futures rose 60 cents to settle at $82.17 a barrel

  • The Brent/WTI spread (WTCLc1-LCOc1) narrowed last to minus $4.58, after hitting a high of minus $4.40 and a low of minus $4.60.

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