HOUSTON/NEW YORK (Reuters) - U.S. West Texas Intermediate crude at Midland on Thursday traded at the biggest discount to futures in almost four months after Phillips 66 closed a unit for maintenance at its Texas refinery, adding to a backlog of barrels as production climbs.
Phillips 66 said planned maintenance work is underway at its 147,000 barrel per day (bpd) refinery in Borger, Texas.
WTI Midland weakened to last trade at a $7.40 a barrel discount to U.S. crude futures, the biggest discount since mid-December and down from a $3.90 discount on Wednesday. Midland crude prices have weakened as regional inventories approached record levels and pipelines flows weakened, while production hits fresh peaks, traders said.
Reporting by Collin Eaton in Houston and Devika Krishna Kumar in New York; Editing by Alistair Bell