NEW YORK: US cash crude differentials were mixed on Thursday, with most weaker as crude futures fell on both sides of the Atlantic, while the transatlantic spread between Brent and US crude oil futures prices widened.
Light Louisiana sweet, for May delivery, traded on Wednesday from $15.75 to $16.75 above the US May crude futures, also known as West Texas Intermediate (WTI). WTI is the light, sweet crude futures contract's benchmark grade deliverable at Cushing, Oklahoma.
That was a weaker range for LLS differentials after Wednesday's trades from $16.30 to $17.10 a barrel above the benchmark.
A Gulf of Mexico-produced grade, Mars sour crude, traded at $11.90 and $12.10 above the futures benchmark, trading within Wednesday's bid/offer spread, which was pegged at $11.75/$12.25 above the benchmark futures.
But Thursday's Mars trades were below Tuesday's trades from $13.10 to $13.75 above the benchmark.
Bonito sour traded at $14.30 and $14.90 above the benchmark WTI, putting the differential on either side of Wednesday's trade at $14.80 above the benchmark.
Eugene Island crude traded at $14.10 above the benchmark futures, weaker than the bid/offer spread pegged on Wednesday at $14.50/$15.00 over the benchmark.
Differentials for Midland grades strengthened slightly.
West Texas Intermediate crude at Midland traded at flat to the benchmark and 5 cents under it, after Wednesday's trading at 5 cents and 10 cents under the benchmark.
WTI at Midland traded on Tuesday at 20 cents and 25 cents under the benchmark.
West Texas Sour, also at Midland, traded at 10 and 15 cents under the benchmark, after trading Wednesday at 15 cents under and on Tuesday at 25 cents under the benchmark.
Increasing access to pipelines that move crude from the Midland region to Texas Gulf Coast refineries is expected to keep Midland differentials supported.
"I think going forward the Midland be bid up and over Cushing WTI, especially with LLS at these levels," said a crude oil trader.
Crude futures fell on Thursday as a jump in US jobless claims reinforced concerns about demand for petroleum if the economic recovery in the United States is sputtering.
Brent crude's premium to US crude ended at $13.08 a barrel on Thursday based on settlements, with the spread widening after ending at $12.66 a barrel on Wednesday.
The spread ended on Tuesday at $13.50, but reached $14.66 during the session. The premium reached $14.45 on Monday after falling earlier in the session to $12.32, the lowest level for Brent's premium to US crude since July.
Usually the wider the arbitrage, currently Brent's premium to US crude, the more supportive for US cash crude differentials. This holds especially for sweet grades that are priced in line with other global waterborne crudes such as Brent.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>*
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