US Cash Crude — Grades steady as US offshore production returns, investors watch freight costs
HOUSTON, Oct 12 (Reuters) — Grades were little changed on Monday, dealers said, as offshore production started to return to normal after a hurricane, and as investors watched high freight rates that have hurt export demand. About 604,503 barrels of oil production per day, or 29.6% of Gulf of Mexico output, was shut-in on Monday, according to the Marine Minerals Administration. Five platforms and one rig remained evacuated, the agency said. Meanwhile, the daily cost of chartering a supertanker to ship US crude oil to China eased at the end of last week after touching a record high, according to data from the Baltic Exchange. The freight rate slipped to $634,974 per day on Friday, marking the first decline since September 8. It touched $637,675 on October 8, the highest daily rate recorded on this route since its inception, according to the exchange. Heavy crude grades in the Americas had priced at steep discounts in recent days as soaring freight rates have stifled exports and US refiners have been running close to their limits. West Texas Intermediate crude's discount to Brent remained largely unchanged on Friday. A wider arb usually supports exports, while a narrower discount redu
HOUSTON, Oct 12 (Reuters) — Grades were little changed on Monday, dealers said, as offshore production started to return to normal after a hurricane, and as investors watched high freight rates that have hurt export demand. 6% of Gulf of Mexico output, was shut-in on Monday, according to the Marine Minerals Administration. Five platforms and one rig remained evacuated, the agency said. Meanwhile, the daily cost of chartering a supertanker to ship US crude oil to China eased at the end of last week after touching a record high, according to data from the Baltic Exchange.
The freight rate slipped to $634,974 per day on Friday, marking the first decline since September 8. It touched $637,675 on October 8, the highest daily rate recorded on this route since its inception, according to the exchange. Heavy crude grades in the Americas had priced at steep discounts in recent days as soaring freight rates have stifled exports and US refiners have been running close to their limits. West Texas Intermediate crude's discount to Brent remained largely unchanged on Friday.
A wider arb usually supports exports, while a narrower discount reduces them. 4 million bpd at the start of the year, in line with developments throughout the year, Haitham Al Ghais, secretary general of the organisation, said on Monday. 65 a barrel on Monday. 74 a barrel on Monday.
17. com)