NEW YORK: US cash crude differentials weakened on Monday as the transatlantic spread between Brent and US crude oil futures prices narrowed.
While crude futures rose on both sides of the Atlantic, both Brent and US crude oil contracts saw choppy trading that also made the spread between the two futures benchmarks seesaw.
US CASH CRUDE TRADES
Light Louisiana sweet <LLS->, for May delivery, traded on Monday at $14.50 and $14.65 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 after LLS traded on Friday from $15.00 to $15.70 above the benchmark.
A Gulf of Mexico-produced grade, Mars sour crude <MRS->, traded at $8.30 over the benchmark WTI, a weaker differential after Friday's traded from $10.45 to $11.00 over the benchmark.
West Texas Intermediate crude at Midland <WTM-> traded at 10 cents under the benchmark, after Friday's trade at 5 cents under the benchmark futures.
West Texas Sour <WTS->, also at Midland, traded at 20 cents under the benchmark, in the middle of its bid/offer spread pegged on Friday at 30 cents/10 cents under the benchmark.
Midland grades have been supported by buying spurred because new pipeline access for transporting crude oil from the Midland region to the Texas Gulf Coast requires increased supply to fill the pipelines as they start up.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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