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U.S. cash crudes lower, LLS, Mars hit 3-year low

Thu, 12th Sep 2013 20:25

NEW YORK, Sept 12 (Reuters) - U.S. cash crude differentialsfell broadly on Thursday with Light Louisiana Sweet crude andsour Mars crude hitting three-year lows as buying interest wanedin the market, traders said.

Light Louisiana Sweet crude for delivery into St.James, Louisiana, traded at $1.50 a barrel over October U.S.crude oil futures, its lowest level since April 2010.

The market for light sweet oil in the U.S. Gulf Coast iswitnessing a structural change due to pipeline additions.Traders are awaiting the start of Royal Dutch Shell's Houston-to-Houma (Ho-Ho) pipeline, which will bring light Texascrude to Louisiana when it comes online at the end of this year.

October Mars sour crude fell to trade at $2.85, $2.90and $2.95 a barrel under benchmark futures. This is its lowestvalue since August 2010.

West Texas Intermediate crude for delivery atMidland, Texas, traded at $0.17 and $0.20 under benchmarkfutures, about 15 cents lower than Wednesday levels.

In the futures market, Brent crude rose $1.13 to settle at$112.63 a barrel and U.S. October futures settled $1.04 higherat $108.60 a barrel.

U.S. crude futures' discount against European Brent, hit a high of $4.46 earlier in the day but ended $4.03a barrel at settlement. (Reporting by Selam Gebrekidan; Editing by Tim Dobbyn)

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