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US Cash Crude-Spread widens, grades weaken;Seaway cited
2012年5月11日 / 晚上9点13分 / 6 年前

US Cash Crude-Spread widens, grades weaken;Seaway cited

* LLS sells for $13.60 over WTI, off 40 cents
    * Mars trades at premium of $10.50, down 80 cents
    * Transatlantic spread settles 48 cents wider
    * Seaway pipeline reversal could be having impact

    HOUSTON, May 11 (Reuters) - U.S. cash crude differentials
weakened on Friday despite a wider transatlantic spread, and
traders said they suspected plans to reverse Seaway pipeline
later this month were a drag, although the first Seaway cargo
put on offer was pricey.	
    Light Louisiana Sweet sold for $13.60 a barrel over West
Texas Intermediate, off 40 cents. Mars sour traded
at a premium of $10.50, weaker by 80 cents.	
    The transatlantic spread widened 48 cents to
$16.13 in favor of Brent, from $15.65 Thursday, which should
have lifted cash crude premiums.	
    Differentials weakened, however, and traders said planned
reversal of Seaway pipeline starting May 17 to bring the first
crude directly from Cushing, Oklahoma, to the Gulf Coast could
be having an effect. Cushing crude is expected ultimately to
weaken Gulf Coast grades as it gains on Brent.	
    Nevertheless, the first offer of domestic sweet crude on the
Gulf Coast via Seaway on Friday was at 50 cents under Brent,
which one trader said was pricey given the fact that LLS traded
$2.05 weaker than the arb's Friday settlement.	
    "WTI should be weaker than LLS," he said.	
    Traders identified BP as the offerer of two 500,000-barrel
Seaway-delivered batches to the Houston area. BP declined
    Domestic sweet has been discounted sharply from Brent
because it has been unable to reach the world market at the Gulf
Coast. When that changes, it is expected to strengthen WTI and
weigh on cash crudes.	
    "The arb strengthened. What's funny is grades have not. It's
even going into sours a little. It could be the result of
Seaway," trading consultant John Troland said.	
    On futures markets, June WTI settled at $96.13 a
barrel, down 95 cents. June Brent ended regular trading
at $112.26, down 47 cents.

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