U.S. cash crude grades largely weakened on Monday, dealers said, as Middle East producers are pushing ahead with oil loading even amid fresh ship attacks in the Strait of Hormuz and renewed strikes between the U.S. and Iran in recent days.
Meanwhile, stocks of crude oil in the U.S. Strategic Petroleum Reserve fell by 5.5 million barrels to 325.7 million barrels, the lowest level since May 1983, according to data from the Department of Energy.
The drawdowns are a part of a U.S. agreement to release 172 million barrels from the facility to plug a gap in global inventories after the Iran war and help push down fuel prices.
Iranian and U.S. negotiating teams were due in Doha this week, but Iran said on Monday no meeting had been scheduled as weekend missile fire from both sides tested the interim ceasefire to end the four-month-old war.
The U.S. and Iran gave themselves at least 60 days to implement the 14-point memorandum of understanding to extend an April ceasefire, discuss Iran's nuclear program and negotiate a permanent truce. But progress has been halting, with each side accusing the other of violating agreed terms.
Energy shipping in the strait slowed after attacks on a container ship on Thursday and an oil tanker on Saturday sparked tit-for-tat strikes, threatening Washington and Iran's interim peace deal.
A fourth Very Large Crude Carrier, capable of carrying 2 million barrels of oil, was seen loading at Saudi Arabia's Ras Tanura terminal on Monday, LSEG data showed, even after a helicopter belonging to Saudi Aramco TADAWUL:2222 crashed on Sunday, killing 14 people. The cause of the crash was unknown.
Three other VLCCs have loaded oil and gone dark since leaving the terminal over the weekend, according to the data. Going "dark" refers to vessels with their transponders switched off to reduce the risk of attack while sailing through the Gulf.
Light Louisiana Sweet for August delivery at a midpoint of a $1.05 premium and was seen bid and offered between a 95-cent and $1.15 a barrel premium to U.S. crude futures NYMEX:CL1!
Mars Sour eased $1.20 to a midpoint of a $2 discount and was seen bid and offered between a $2.20 and $1.80 a barrel discount to U.S. crude futures NYMEX:CL1!
WTI Midland at a midpoint of a 10-cent discount and was seen bid and offered between a discount of 30 cents and 10-cent a barrel premium to U.S. crude futures NYMEX:CL1!
West Texas Sour eased 15 cents to a midpoint of a $2.30 discount and was seen bid and offered between a $2.60 and $2.00 a barrel discount to U.S. crude futures NYMEX:CL1!
WTI at East Houston, also known as MEH, traded between a discount of 10 cents and a 20-cent a barrel premium to U.S. crude futures NYMEX:CL1!
ICE Brent August futures ICEEUR:BRN1! rose $1.16 to settle at $73.15 a barrel on Monday.
WTI August crude NYMEX:CL1! futures rose $1.52 to settle at $70.75 a barrel on Monday.
The Brent/WTI spread narrowed 37 cents to last trade at minus $2.39, after hitting a high of minus $2.22 and a low of minus $2.71.