US cash crude grades mixed as Middle East exports recover and refinery demand slips
USO•US cash crude grades were mixed as Middle East exports recovered and US refinery demand was expected to fall. Regional crude exports averaged 18.3 million barrels per day on September 30, while US refinery capacity offline was expected to reach 604,000 bpd for the week ending October 9.
1. Exports and refinery capacity
Middle East crude exports topped pre-war levels on 14 days in September, with the seven-day moving average at 18.3 million barrels per day on September 30, provisional shipping data showed. Attacks on tankers and logistical constraints cloud the outlook for sustained higher flows. US refiners were expected to have 604,000 bpd of capacity offline for the week ending October 9, falling to 533,000 bpd the following week.
2. Crude prices and grades
Light Louisiana Sweet rose 12 cents to a midpoint premium of $2.25 a barrel, while Mars Sour fell 75 cents to a $1 premium. WTI Midland was steady at a 45-cent premium, and West Texas Sour fell 45 cents to a $2.45 discount. Brent futures fell $1.93 to settle at $100.32 a barrel, and WTI futures fell $1.68 to settle at $89.43.
3. Other oil market developments
Two sources familiar with the matter said President Donald Trump was preparing an executive order to expand access to tax-exempt diesel. Industry executives at a London conference said shipping bottlenecks, refinery output cuts and inventory draws that could take years to replace would keep global oil prices high beyond this year.
