October barrels firm as Brent crude tops WTI

Cash crude differentials firmed on Wednesday on more favorable spreads as traders began the first day of trading for October barrels.

Tuesday marked the end of the three day roll period and the deadline for September pipeline booking. As trading shifted to October grades Wednesday, the U.S. Department of Energy reported data showing an unexpected, 200,000-barrel build in US crude stocks last week, driven primarily by a 1.1-million-barrel-a-day increase in crude imports. [EIA/S]

US crude futures fell and erased a premium they briefly held over Europe's Brent oil CL-LCO1=R. WTI fell 75 cents after market settlement to $71.30 a barrel, an 11 cent a barrel discount to Brent, which fell 41 cents to $71.41 a barrel.

A Brent premium means that imports, largely priced against the Brent marker, remain less competitive against US grades. WTI for October delivery traded for a 78 cent a barrel discount to November crude, even with Tuesday. A large contango discount tends to strengthen US cash grades.