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US Cash Crude- Grades ease as WTI/Brent spread narrows below minus $4
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US Cash Crude- Grades ease as WTI/Brent spread below minus $4

- Physically traded domestic U.S. crudes were mixed on Wednesday, dealers said, as the spread between U.S. West Texas Intermediate (WTI) crude and Brent remained range-bound.

WTI Midland WTC-WTM eased 5 cents, while WTI at East Houston WTC-MEH, also known as MEH, strengthened 5 cents. Mars weakened 10 cents.

The WTI/Brent spread WTCLc1-LCOc1 was flat at minus $4.14, after hitting a high of minus $4.12 and a low of minus $4.25.

U.S. crude oil stockpiles fell by 3.7 million barrels last week, as refining activity picked up, the Energy Information Administration (EIA) said on Wednesday. Analysts had on average expected a 700,000-barrel draw.

Gasoline and distillate inventories rose in a sign of improving demand. EIA/S

Meanwhile, the Middle East is bracing for a possible wave of attacks by Iran and its allies following last week's killing of senior members of militant groups Hamas and Hezbollah, with concern rising the conflict in Gaza is turning into a wider regional war.

Attacks on vessels passing through the region have forced tankers to choose longer alternate routes, leaving more oil on the water for longer.

In refining, Motiva Enterprises will begin maintenance activities on the gasoline-producing fluidic catalytic cracker unit (FCCU) at its 626,000-barrel-per-day Port Arthur, Texas, refinery, which is expected to last for 10 days, the company said on Wednesday.

Exxon Mobil XOM.N has restarted select units at its 251,800 barrel-per-day refinery in Joliet, Illinois, the company said.


* Light Louisiana Sweet WTC-LLS for September delivery fell 5 cents at a midpoint of a $1.75 premium and was seen bid and offered between a $1.50 and $2.00 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS fell 10 cents at a midpoint of a $1 discount and was seen bid and offered between a $1.20 and 80-cent a barrel discount to U.S. crude futures CLc1

* WTI Midland WTC-WTM fell 5 cents at a midpoint of a 70-cent premium and was seen bid and offered between a 50-cent and 90-cent a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS was unchanged at a midpoint of a 5-cent discount and was seen bid and offered between a discount of 30 cents and 20-cent a barrel premium to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.00 and $1.30 a barrel premium to U.S. crude futures CLc1

* ICE Brent October futures LCOc1 rose $1.85 to settle at $78.33 a barrel on Wednesday.

* WTI September crude CLc1 futures rose $2.03 to settle at $75.23 a barrel on Wednesday.

* The Brent/WTI spread WTCLc1-LCOc1 was flat at minus $4.14, after hitting a high of minus $4.12 and a low of minus $4.25.


(Reporting by Arathy Somasekhar in Houston; Editing by Jamie Freed)

((Arathy.s@tr.com))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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