Grades firm on export, refinery demand

U.S. crude grades strengthened on Tuesday in light trading, dealers said, citing export and refinery demand.

Mars Sour (WTC-MRS) gained 35 cents, while West Texas Sour (WTC-WTS) gained 45 cents.

WTI Midland (WTC-WTM) and WTI at East Houston (WTC-MEH), also known as MEH, inched 5 cents higher each to touch their highest since late March.

Across the Atlantic, WTI Midland crude differentials with Total selling to Vitol a CIF Rotterdam cargo for June 12-16 at dated Brent plus $1.15, up 35 cents from a similar deal on Friday.

Vitol also bid for a CIF Rotterdam June 20-30 cargo at dated plus $1.15, while Gunvor offered the June 16-20 period at dated plus $1.35. Another WTI Midland offer was withdrawn by Total at dated plus $1.20.

The Brent/WTI spread (WTCLc1-LCOc1) widened 2 cents to minus $4.13, after hitting a high of minus $4.01 and a low of minus $4.25.

While the economics of shipping from the U.S. Gulf Coast to Europe in June has strengthened, it was still closed due to high freight rates and weak WTI-Brent differentials, Energy Aspects said.

U.S. markets will further tighten in summer as inventories draw and due to the Biden administration's plans to refill of the Strategic Petroleum Reserve, the consultancy said.

* Light Louisiana Sweet (WTC-LLS) for July delivery gained 30 cents to a midpoint of a $2.35 premium and was seen bid and offered between a $2.20 and $2.50 a barrel premium to U.S. crude futures CL1!

* Mars Sour (WTC-MRS) gained 35 cents to a midpoint of a 20-cent discount and was seen bid and offered between ​a discount of 40 cents and parity to U.S. crude futures CL1!

* WTI Midland (WTC-WTM) gained 5 cents to a midpoint of a $1.2 premium and was seen bid and offered between a $1.00 and $1.40 a barrel premium to U.S. crude futures CL1!

* West Texas Sour (WTC-WTS) gained 45 cents to a midpoint of a 60-cent discount and was seen bid and offered between a 80-cent and 40-cent a barrel discount to U.S. crude futures CL1!

* WTI at East Houston (WTC-MEH), also known as MEH, traded between a $1.25 and $1.75 a barrel premium to U.S. crude futures CL1! ​

* ICE Brent July futures BRN1! fell $3.53 to settle at $73.54 a barrel on Tuesday.

* WTI July crude CL1! futures fell $3.21 to settle at $69.46 a barrel on Tuesday.

* The Brent/WTI spread (WTCLc1-LCOc1) widened 2 cents to minus $4.13, after hitting a high of minus $4.01 and a low of minus $4.25.