US cash crude grades weaken as Middle East concerns ease and US output rises
USO•US cash crude grades weakened as traders weighed easing fears of Middle East supply disruptions against rising US production and inventories. US crude production is expected to reach 13.9 million barrels per day in 2026 and 14.3 million in 2027.
1. Crude grades weaken
US cash crude grades weakened on Tuesday as fears of additional Middle East supply disruptions eased and US oil production and inventories rose. Light Louisiana Sweet was flat at a $2-per-barrel premium to US crude futures, while Mars Sour and West Texas Sour eased to discounts of $2 and $2.65, respectively. WTI Midland weakened to a 10-cent premium.
2. Output and inventories rise
The Energy Information Administration said US crude production is expected to reach 13.9 million barrels per day in 2026, up from 13.7 million in 2025, and rise to 14.3 million in 2027. US crude stocks rose by 9 million barrels in the week ended November 6, market sources said, citing American Petroleum Institute data. Brent futures fell $1.08 to settle at $91.49 a barrel, while WTI futures fell 81 cents to $86.04.
