Light Louisiana Sweet for September delivery rose 15 cents to a midpoint of a $1.65 premium and was seen bid and offered between a $1.50 and $1.80 a barrel premium to U.S. crude futures CLc1
Mars Sour rose 30 cents to a midpoint of a $1.90 discount and was seen bid and offered between a $2.10 and $1.70 a barrel discount to U.S. crude futures CLc1
WTI Midland rose 15 cents to a midpoint of a 45-cent premium and was seen bid and offered between a 25-cent and 65-cent a barrel premium to U.S. crude futures CLc1
West Texas Sour gained 30 cents to a midpoint of a $1.30 discount and was seen bid and offered between a $2.05 and 55-cent a barrel discount to U.S. crude futures CLc1
WTI at East Houston, also known as MEH, traded between a 60-cent and $1.00 a barrel premium to U.S. crude futures CLc1
ICE Brent October futures LCOc1 rose $3.04 to settle at $82.49 a barrel on Thursday
WTI September crude CLc1 futures rose $2.07 to settle at $77.29 a barrel on Thursday
The Brent/WTI spread widened 89 cents to last trade at minus $6.29, after hitting a high of minus $5.41 and a low of minus $6.34.
Saudi prices, spreads and refinery news
Weighing on prices, however, was Saudi Arabia's announcement that it lowered the September official selling price for its flagship Arab Light crude to Asia, taking the grade's premium to its lowest level since June 2020, according to a pricing notice.
The spread between Brent and WTI also widened by 89 cents to last trade at minus $6.29 on Thursday. A bigger WTI discount to Brent makes it more economic for companies to ship oil abroad.
In refinery news, Delek Holdings' DK.N Big Spring, Texas, refinery reported a circulation pump failure. According to a filing with the Texas Commission on Environmental Quality, operations at the 73,000-barrel-per-day refinery were adjusted to minimize flaring until circulation of diglycol amine could be restored.
Gulf Coast grades firm on supply disruption fears
NEW YORK, Aug. 6 (Reuters) - U.S. Gulf Coast grades firmed on Thursday as investors weighed the risk of fresh supply disruptions in the Middle East, following Iran's proposal to ban some vessels from traversing the Strait of Hormuz and charge violators a fifth of the ship's cargo value for violations.
Iran's semi-official Fars news agency reported that a parliamentary committee is reviewing a draft bill that would bar U.S., Israeli and other "hostile" vessels from transiting the Strait and impose fines of up to 20% of a ship's cargo value for violations.
Traders were also continuing to assess reports of a proposed deal between Iran and Oman that would give Tehran control over ships entering the Gulf through the Strait.
In addition, a Reuters report that Tehran had warned Gulf states it could target their oil, power and water infrastructure unless they persuaded U.S. President Donald Trump to halt strikes and pursue negotiations further heightened concerns about regional supply risks.
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