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Saturday, September 5, 1998

US West Coast crude prices up, discounts steady 

REUTERS  
Los Angeles, Sept 4: US West Coast crude oil prices rose in synch with broader energy markets on Thursday while differentials held steady for the seventh day. No deals were reported.

With trades on hold, prices got a boost from a $1.00 jump in October crude oil futures. Middle East tensions and fears of Russian export disruptions prompted traders to pay up for oil futures on the New York Mercantile Exchange.

Meanwhile, crude oil traders on the West Coast stayed out of the spot market to assess their supply needs for October. Otherwise, talk was thin.

"Prices are riding up and people are sitting back and watching so I don't think you'll see many trades now," said a West Coast trader.

US cash prices for West Texas Intermediate/Cushing (WTI) crude -- the price basis for Alaska North Slope oil -- rose to $14.67 a barrel.

In California markets, the benchmark ANS discount remained $0.845 a barrel under WTI -- the narrowest discount in 16 months.

Steadily rising against light crude grades, medium heavyANS has benefitted from lower production and fewer foreign alternatives.

The combination of unchanged differentials and higher WTI prices lifted ANS. Today's October WTI cash price was $14.67/14.73.

Pure ANS prices rose to $13.78/13.93 a barrel in line with cash WTI and Nymex gains.

In blended grades, Line 63 crude remained at a $1.44 per barrel premium over Buena Vista California crude, traders said. The fixed price for Line 63 rose to $13.28/13.44, up on WTI and ANS gains.

Pure prices for California heavy crude rose with higher posted prices. Chevron raised its postings 75 cents a barrel by late Thursday. Pure SJV heavy prices rose 13 cents a barrel to $8.42/8.52 on an outright basis, with premiums holding at 30 cents a barrel over postings.

California Wilmington grade premiums remained a notional 92 cents over postings.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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