NEW YORK, July 28 (Reuters) - Several U.S. cash crudes were bid higher on Tuesday after Shell's 173,000-barrel-a-day-capacity offshore Eugene Island pipeline was halted for repairs following a leak.
Traders said Bonito sour crude, which is similar to Eugene Island crude, was offered for as much as $2.40 above West Texas Intermediate following the pipeline closure, which occurred Saturday but wasn't reported until Monday. Bonito was last dealt in a publicly disclosed trade on July 22 for 35 cents above WTI.
No actual deals for Bonito or Eugene Island crude were reported.
'If I were a trader I would not touch Bonito or Eugene Island crudes until I knew more about (the pipeline) problems,' one source in the cash crude market said.
Light Louisiana Sweet dealt for $4.40 above WTI, up 20 cents a barrel from Monday.
Shell said it wasn't clear when Eugene Island pipeline offshore Louisiana could be repaired and restarted, after it leaked 1,400 barrels of oil into the Gulf of Mexico on Saturday. The crude line had been running around 100,000 barrels a day.
The pipeline has been carrying new oil from Chevron's Tahiti platform, which began operating in May.
Cash grades also gained as the spread between first and second month U.S. crude futures widened Tuesday, to $1.83 a barrel from $1.71 a barrel on Monday.
On futures markets, September WTI fell $1.69 to $66.69 a barrel after settlement. September Brent fell $1.36 to $69.45.
Cash crude Mars sour fell 5 cents to sell for 35 cents a barrel under WTI.
Thunder Horse intermediate sour traded for $2.15 a barrel above WTI, up 5 cents a barrel. Heavy Louisiana Sweet dealt for +$3.60, within the range of its recent bargaining levels.
Poseidon sour sold at par with Monday's level, of 10 cents under WTI.
On the West Coast, Alaska North Slope crude for September last traded for -20 cents, on Friday. Buyers of California crudes lowered posted prices $1.15 cents.
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(Reporting by Joshua Schneyer; Editing by Christian Wiessner)
((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 2009. 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.
Traders said Bonito sour crude, which is similar to Eugene Island crude, was offered for as much as $2.40 above West Texas Intermediate following the pipeline closure, which occurred Saturday but wasn't reported until Monday. Bonito was last dealt in a publicly disclosed trade on July 22 for 35 cents above WTI.
No actual deals for Bonito or Eugene Island crude were reported.
'If I were a trader I would not touch Bonito or Eugene Island crudes until I knew more about (the pipeline) problems,' one source in the cash crude market said.
Light Louisiana Sweet dealt for $4.40 above WTI, up 20 cents a barrel from Monday.
Shell said it wasn't clear when Eugene Island pipeline offshore Louisiana could be repaired and restarted, after it leaked 1,400 barrels of oil into the Gulf of Mexico on Saturday. The crude line had been running around 100,000 barrels a day.
The pipeline has been carrying new oil from Chevron's Tahiti platform, which began operating in May.
Cash grades also gained as the spread between first and second month U.S. crude futures widened Tuesday, to $1.83 a barrel from $1.71 a barrel on Monday.
On futures markets, September WTI fell $1.69 to $66.69 a barrel after settlement. September Brent fell $1.36 to $69.45.
Cash crude Mars sour fell 5 cents to sell for 35 cents a barrel under WTI.
Thunder Horse intermediate sour traded for $2.15 a barrel above WTI, up 5 cents a barrel. Heavy Louisiana Sweet dealt for +$3.60, within the range of its recent bargaining levels.
Poseidon sour sold at par with Monday's level, of 10 cents under WTI.
On the West Coast, Alaska North Slope crude for September last traded for -20 cents, on Friday. Buyers of California crudes lowered posted prices $1.15 cents.
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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 Joshua Schneyer; Editing by Christian Wiessner)
((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 2009. 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.