Grades firm on wider WTI/Brent spread, supply concerns

Cash crude grades firmed on Friday, dealers said, as the spread between U.S. West Texas intermediate crude and Brent widened, and on worries of tighter supply.

Mars Sour strengthened 30 cents to a $2.70 discount, while WTI at East Houston, known as MEH, firmed 25 cents after the WTI/Brent spread widened the most in two months.

WTI Midland strengthened 15 cents to a $1.90 premium to U.S. crude as U.S. oil rigs fell by 4 to 609 this week, their lowest level since October, indicating possibly tighter supplies.

Oil major Chevron also warned that its Permian production will be "a little bit" lower than planned in 2023, adding output for the year would flat to 3% higher this year.

In refining news, Exxon Mobil Corp XOM reset the initial startup date for a new crude distillation unit (CDU) at its 369,024-barrel-per-day (bpd) Beaumont, Texas, refinery by five days to Feb. 4, sources said.

* Light Louisiana Sweet (WTC-LLS) for March delivery rose 25 cents to a midpoint of $3.25 premium and traded between a $3.25 and $3.50 a barrel premium to U.S. crude futures CL1!.

* Mars Sour (WTC-MRS) rose 30 cents to a midpoint of a $2.70 discount and traded between a $2.50 and a $2.90 a barrel premium to U.S. crude futures CL1!.

* WTI Midland (WTC-WTM) rose 15 cents at a midpoint of $1.90, trading between a $1.50 and a $2 a barrel premium to U.S. crude futures CL1!.

* West Texas Sour (WTC-WTS) rose 35 cents to a midpoint of a 70-cent discount and traded between a 30-cent and a $1.10 a barrel discount to U.S. crude futures CL1!.

* WTI at East Houston, also known as MEH, traded between $2.00 and $2.50 over WTI.

* ICE Brent March BRN1! futures fell 81 cents to settle at $86.66 a barrel.

* WTI March crude CL1! futures fell $1.33 to settle at $79.68 a barrel.

* The Brent/WTI spread (WTCLc1-LCOc1) widened 53 cents to settle at minus $6.98, after hitting a high of minus $6.32 and a low of minus $7.