Grades mixed as Keystone pipeline shuts after leak

U.S. physical crude oil grades were mixed on Thursday as the TC Energy shut flows on its Keystone crude oil pipeline following a leak in Kansas, dealers said.

Inland WTI Midland crude eased 25 cents to a midpoint of a 25-cent premium to U.S. crude futures, while coastal grade Light Louisiana Sweet crude held steady.

Canada's TC Energy TRP said it shut its 622,000 barrel-per-day Keystone pipeline on Wednesday night after a spill into a Kansas creek. Keystone is the primary line shipping heavy Canadian crude from Alberta to the U.S. Midwest and Gulf Coast.

It was unclear how long the closure would last.

U.S. crude oil futures initially rallied on the news, which meant a hefty amount of crude supply would not hit the U.S. and global market, but then prices eased on the prospect that the line might soon return to service.

Oil majors Exxon Mobil Corp XOM and Chevron Corp CVX said they would ramp up investments next year, but the spending would not immediately lead to more production.

Exxon said it would increase project investments next year to between $23 billion to $25 billion, up from a projected $22 billion this year. Chevron said it plans to spend $17 billion, up from about $15 billion this year.

* Light Louisiana Sweet (WTC-LLS) for January delivery fell 15 cents to a midpoint of $1.15 and traded between a $1 and $1.30 a barrel premium to U.S. crude futures CL1!.

* Mars Sour (WTC-MRS) was unchanged at a midpoint of a $5.75 discount, trading between a $5.85 and $5.65 a barrel premium to U.S. crude futures CL1!.

* WTI Midland (WTC-WTM) fell 25 cents to a midpoint of 25 cents and traded between parity and a 50-cent a barrel premium to U.S. crude futures CL1!.

* West Texas Sour (WTC-WTS) rose $1.02 to a midpoint of minus $2.13 and traded between a $2.25 and $2 a barrel discount to U.S. crude futures CL1!.

* WTI at East Houston, also known as MEH, traded from 50 cents to 70 cents over WTI.

* ICE Brent February BRN1! futures fell $1.02 cents to settle at $76.15 a barrel.

* WTI January crude CL1! futures fell 55 cents to settle at $71.46 a barrel.

* The Brent/WTI spread (WTCLc1-LCOc1) narrowed 32 cents to settle at minus $4.57, after hitting a high of minus $3.93 and a low of minus $4.88.