US cash crude grades mixed as WTI-Brent spread stays unchanged
USO•US cash crude grades were mixed, while the WTI-Brent spread held at a $12.88-a-barrel discount. December Brent futures settled at $117.64 a barrel and WTI at $104.12.
1. Crude grades mixed
US cash crude grades were mixed on Friday as the discount of US crude to Brent remained unchanged at $12.88 a barrel. Light Louisiana Sweet was at a midpoint premium of $3 a barrel to US crude futures, while Mars Sour eased 90 cents to a $1 premium; WTI Midland firmed 5 cents to a 45-cent premium.
2. Supply risks and output
Traders were concerned about potential supply disruptions if the Iran war escalates after the US midterm elections. A tanker in the Strait of Hormuz was hit by explosive devices, and Yemen’s Houthi militants said they had attacked sites in Saudi Arabia, including oil facilities. Libya’s National Oil Corporation said an armed group shut a valve on the Hamada crude pipeline, halting about 15,000 barrels per day.
3. Futures and production
December Brent futures rose $2.76 to settle at $117.64 a barrel, while December WTI futures rose $2.12 to $104.12. The US oil rig count rose by two; the EIA said US crude output increased in August while demand for crude oil and petroleum products declined.
