HOUSTON, Dec 22 (Reuters) - Light Louisiana Sweet
rose more than $2 and Heavy Louisiana Sweet gained $1 on
the first day of roll trade in the U.S. cash crude market,
traders said Monday.
LLS sold as high as $6.30 a barrel over West Texas Intermediate, after selling for $4.25 Friday, and HLS changed hands for +$2.50, up from $1.50. WTI at Midland moved in a bid-offer spread of Even/+50 cents, up 40 cents.
Grades were volatile due to thin trade, with most traders finished for the month and out of the market. Those still buying were willing to pay more because they had to close gaps in their slates by Wednesday, traders said.
The pipeline-scheduling deadline is Wednesday. The January WTI futures contract expired on Friday. The period in between is called roll trade and provides an opportunity for last-minute deals to complete cash trader slates for the month.
On futures markets, February WTI lost $2.45 cents to $39.91 a barrel. February Brent shed $2.55 to $41.45. The roll hovered around -$9.00/-$8.50, reflecting the usually deep contango in the futures market.
Contango means that out months are more valuable than near months, and deep contango means that the time spread is wide. It ended January futures trading near -$8.00. The February-March spread ended at -$2.37 Monday.
On the West Coast, Alaska North Slope crude stayed $5.60 under WTI. Buyers raised their offers for California crude $6.05, keeping pace with the new front month, February. ==============================================================
DATA LINKS: Energy Speed Guide Crude Speed Guide NYMEX WTI futures ICE Brent futures US crude prices US crude differentials Freight rates
NEWS LINKS: NYMEX Market reports ICE market reports US Cash crude deals Foreign crude deals Dirty tanker news Dirty tanker fixtures Weekly US oil data US crude outlook US Refinery outages US Cash oil products US products outlook ............................................................
(Reporting by Bruce Nichols; Editing by David Gregorio)
((Email: b.nichols@thomsonreuters.com; +1 713 210 8510; Reuters Messaging: bruce.nichols.reuters.com@reuters.net)) Keywords: MARKETS USCRUDE (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LLS sold as high as $6.30 a barrel over West Texas Intermediate, after selling for $4.25 Friday, and HLS changed hands for +$2.50, up from $1.50. WTI at Midland moved in a bid-offer spread of Even/+50 cents, up 40 cents.
Grades were volatile due to thin trade, with most traders finished for the month and out of the market. Those still buying were willing to pay more because they had to close gaps in their slates by Wednesday, traders said.
The pipeline-scheduling deadline is Wednesday. The January WTI futures contract expired on Friday. The period in between is called roll trade and provides an opportunity for last-minute deals to complete cash trader slates for the month.
On futures markets, February WTI lost $2.45 cents to $39.91 a barrel. February Brent shed $2.55 to $41.45. The roll hovered around -$9.00/-$8.50, reflecting the usually deep contango in the futures market.
Contango means that out months are more valuable than near months, and deep contango means that the time spread is wide. It ended January futures trading near -$8.00. The February-March spread ended at -$2.37 Monday.
On the West Coast, Alaska North Slope crude stayed $5.60 under WTI. Buyers raised their offers for California crude $6.05, keeping pace with the new front month, February. ==============================================================
DATA LINKS: Energy Speed Guide Crude Speed Guide NYMEX WTI futures ICE Brent futures US crude prices US crude differentials Freight rates
NEWS LINKS: NYMEX Market reports ICE market reports US Cash crude deals Foreign crude deals Dirty tanker news Dirty tanker fixtures Weekly US oil data US crude outlook US Refinery outages US Cash oil products US products outlook ............................................................
(Reporting by Bruce Nichols; Editing by David Gregorio)
((Email: b.nichols@thomsonreuters.com; +1 713 210 8510; Reuters Messaging: bruce.nichols.reuters.com@reuters.net)) Keywords: MARKETS USCRUDE (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.