NEW YORK: US cash crude differentials were mixed on Monday, the third and last day of the monthly roll-period trade, while the transatlantic spread between oil futures prices narrowed.
The roll is the three-day period after the expiration of a front-month US light sweet crude contract, also known by its benchmark West Texas Intermediate (WTI).
"Roll" price trades between April and March West Texas Intermediate barrels were completed at minus 25 cents and minus 35 cents, traders and brokers said, denoting the approximate discount for April supplies, in keeping with a contango structure in the forward curve for oil futures.
The roll traded on Friday at minus 25 cents and on Thursday at minus 32 cents.
Contango, or a higher price for months further out than for front-month barrels, can indicate lagging demand for prompt barrels versus oil for delivery in later months.
Crude oil futures rose on Monday in choppy trading after a bailout deal for Cyprus improved the outlook for fuel demand in the euro zone.
Brent crude price gains were curbed by caution about the Cyprus bailout and Europe's economy, while US crude prices rose more than 1 percent and narrowed the spread between the two contracts to less than $13 a barrel during the session.
Brent's premium to US crude <CL-LCO1=R> fell to $13.36 a barrel based on May contract settlements, narrowing after ending at $13.95 on Friday.
The premium fell during Monday's session as low as $12.85, the lowest since July 2012.
Usually the wider the arbitrage - currently Brent's premium to US crude - the more supportive for US cash crude differentials, especially for sweet grades that are priced in line with other global waterborne crudes like Brent.
CASH CRUDE TRADES
Light Louisiana sweet <LLS->, for April delivery, traded at $20.00 above the benchmark West Texas Intermediate (WTI) <WTC-> crude at Cushing, Oklahoma, strengthening after trading on Friday from $18.00 to $19.00 above the benchmark WTI.
A Gulf of Mexico-produced grade, Mars sour crude <MRS->, traded at $13.00 and $13.25 above the benchmark WTI for April barrels, after the grade traded on Friday at $12.50, $13.00 and $13.20 over the benchmark WTI.
CRUDE FUTURES RISE
Brent May crude rose 51 cents, or 0.47 percent, to settle at $108.17 a barrel, having traded from $106.80 to $109.07.
US May crude rose $1.10, or 1.17 percent, to settle at $94.81 a barrel, having traded from $93.70 to $95.65.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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