HOUSTON, Dec 2 (Reuters) - Grades were mixed on the U.S. cash crude market Wednesday as spreads see-sawed and futures prices plunged after a government report showed swelling inventories of crude and gasoline.
Light Louisiana Sweet sold for $3.50 over West Texas Intermediate, up 20 cents. Mars sour dealt for -45 cents, down 15 cents.
Thunder Horse light sour changed hands for $1.65 over the screen, up 15 cents. Southern Green Canyon heavier sour was unchanged at minus $1.25.
On futures markets, January WTI slid $1.77 to $76.60 a barrel. Brent shed $1.47 to $77.88.
Analysts cited a bearish U.S. Energy Information Administration inventory report, showing a build in crude and gasoline stocks and continued weak feedstock and fuel demand.
The January-February WTI spread started the day yawning to minus $1.85 but recovered to minus $1.57. That was still 17 cents wider than at the close Tuesday.
The WTI-Brent spread widened in favor of Brent to minus $1.42 before narrowing back to minus $1.28, still 30 cents wider than Tuesday.
Both spread moves supported cash differentials. Also providing lift is a short trading month due to the Christmas holiday, which analysts say could accelerate buying early in the month.
December, however, will see pressure on cash crudes due to buyers' need to minimize inventories at the end of the year for tax reasons, traders, brokers and analysts said.
Tax concerns could hold competing foreign crudes offshore until after the first of the year, which could ease the 'last in, first out' tax drag on differentials.
Among other cash crudes, Heavy Louisiana Sweet sold for $2.25 over the screen, in the range of dealing Tuesday.
WTI at Midland gained 8 cents to trade for 3 cents over the screen. West Texas Sour changed hands for $1.40 under, 10 cents weaker.
There was a February deal for LLS at +$2.80.
On the West Coast, Alaska North Slope crude for January delivery sold Wednesday for $1.25 under, up 25 cents. Buyers cut posted prices for California grades $1.75 a barrel.
See for Reuters' generic refining margins
See for the WTI front/second month spread
See for front month WTI/Brent futures spread
See for Reuters' assessment of Dated Brent
See for Reuters assessed tanker rates
See for assessed domestic crude differentials
See for outright U.S. cash crude prices
See for a list of U.S. refinery outages
See for U.S. EIA inventory reports and forecasts
See for recent cash crude deals --------------------------------------------------------------
(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 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.
Light Louisiana Sweet sold for $3.50 over West Texas Intermediate, up 20 cents. Mars sour dealt for -45 cents, down 15 cents.
Thunder Horse light sour changed hands for $1.65 over the screen, up 15 cents. Southern Green Canyon heavier sour was unchanged at minus $1.25.
On futures markets, January WTI slid $1.77 to $76.60 a barrel. Brent shed $1.47 to $77.88.
Analysts cited a bearish U.S. Energy Information Administration inventory report, showing a build in crude and gasoline stocks and continued weak feedstock and fuel demand.
The January-February WTI spread started the day yawning to minus $1.85 but recovered to minus $1.57. That was still 17 cents wider than at the close Tuesday.
The WTI-Brent spread widened in favor of Brent to minus $1.42 before narrowing back to minus $1.28, still 30 cents wider than Tuesday.
Both spread moves supported cash differentials. Also providing lift is a short trading month due to the Christmas holiday, which analysts say could accelerate buying early in the month.
December, however, will see pressure on cash crudes due to buyers' need to minimize inventories at the end of the year for tax reasons, traders, brokers and analysts said.
Tax concerns could hold competing foreign crudes offshore until after the first of the year, which could ease the 'last in, first out' tax drag on differentials.
Among other cash crudes, Heavy Louisiana Sweet sold for $2.25 over the screen, in the range of dealing Tuesday.
WTI at Midland gained 8 cents to trade for 3 cents over the screen. West Texas Sour changed hands for $1.40 under, 10 cents weaker.
There was a February deal for LLS at +$2.80.
On the West Coast, Alaska North Slope crude for January delivery sold Wednesday for $1.25 under, up 25 cents. Buyers cut posted prices for California grades $1.75 a barrel.
See for Reuters' generic refining margins
See for the WTI front/second month spread
See for front month WTI/Brent futures spread
See for Reuters' assessment of Dated Brent
See for Reuters assessed tanker rates
See for assessed domestic crude differentials
See for outright U.S. cash crude prices
See for a list of U.S. refinery outages
See for U.S. EIA inventory reports and forecasts
See for recent cash crude deals --------------------------------------------------------------
(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 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.