Story
WTI Midland Crude Premium Narrows in European Trading Window
Summary
The premium for U.S. WTI Midland crude delivered to Europe eased on Tuesday, evidenced by a transaction between Glencore and Equinor at a lower differential to Dated Brent compared to the previous day's trading.
The premium for physical cargoes of U.S. WTI Midland crude narrowed during Tuesday's Platts pricing window, following a key trade between major commodity firms Glencore and Equinor for a late August/early September delivery.
Transaction Details
In the session, trading house Glencore sold a cargo of WTI Midland crude to Norway's Equinor at a price of Dated Brent plus $5.50 per barrel. The deal was for a cargo scheduled to load from August 30 to September 3, priced on a cost, insurance, and freight (CIF) basis for delivery to Rotterdam.
Market sources indicated this price is equivalent to approximately Dated Brent plus $3.77 per barrel on a free-on-board (FOB) basis. This transaction points to a softening in the premium for U.S. light sweet crude in the European market.
Market Context
AdThe price represents a notable decrease from a similar deal on Monday. In that session, Equinor purchased a WTI Midland cargo from Glencore for an August 23-27 loading window at a premium of Dated Brent plus $5.95 per barrel (CIF Rotterdam).
Further market activity on Tuesday included:
- TotalEnergies bidding for an August 16-20 loading WTI Midland cargo at Dated Brent plus $5.80 (CIF Rotterdam).
- Glencore offering an August 25-29 loading cargo at Dated Brent plus $5.25 (CIF Rotterdam).
In the related North Sea market, Phillips 66 reportedly withdrew a bid for an Ekofisk crude cargo, scheduled for delivery between August 26-28. The previous bid had been for Dated Brent plus $6.00.
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