On the U.S. supply side, crude stocks rose by about 2.7 million barrels in the week ended July 31, market sources said on Tuesday, citing data from the American Petroleum Institute.
Meanwhile, U.S. West Texas Intermediate crude's discount to global benchmark Brent narrowed through the session to last trade at minus $4.91. A smaller WTI discount Brent makes it less economic for companies to ship oil abroad and limits buying by foreign companies.
Price moves in key grades and benchmarks
Light Louisiana Sweet eased 35 cents for September delivery at a midpoint of a $1.50 premium and was seen bid and offered between a $1.25 and $1.75 a barrel premium to U.S. crude futures CLc1
Mars Sour eased 10 cents to a midpoint of a $2.20 discount and was seen bid and offered between a $2.40 and $2.00 a barrel discount to U.S. crude futures CLc1
WTI Midland eased 25 cents to a midpoint of a 35-cent premium and was seen bid and offered between a 15-cent and 55-cent a barrel premium to U.S. crude futures CLc1
West Texas Sour eased 50 cents to a midpoint of a $1.15 discount and was seen bid and offered between a $1.30 and $1.00 a barrel discount to U.S. crude futures CLc1
WTI at East Houston, also known as MEH, traded between a 45-cent and 85-cent a barrel premium to U.S. crude futures CLc1
ICE Brent October futures LCOc1 fell $4.41 to settle at $79.36 a barrel on Tuesday
WTI September crude CLc1 futures fell 45 cents and is currently trading at $75.32 a barrel on Tuesday
The Brent/WTI spread narrowed 96 cents to last trade at minus $4.91, after hitting a high of minus $4.80 and a low of minus $6.48.
U.S. coastal crude grades ease on hopes of diplomatic resolution
HOUSTON, Aug 4 (Reuters) - U.S. coastal crude grades eased on Tuesday on hopes of a diplomatic resolution to the Iran war, which could improve oil supply.
U.S. Secretary of State Marco Rubio said on Tuesday there was progress in talks with Iran and Oman on moving more ships through the strait, but a final agreement was yet to be reached. Treasury Secretary Scott Bessent had said earlier on Tuesday that a deal with Iran to reopen the strait could come as soon as Tuesday or Wednesday.
The world has lost more than 2.6 billion barrels of oil since the U.S.-Israeli war with Iran began in February, the head of Saudi oil giant Aramco 2222.SE said, warning global inventories were running low despite measures to reroute flows.
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