U.S. News

US Crude Outlook-Futures dip, demand rise support


HOUSTON, May 10 (Reuters) - Soft futures, deepening spreads and forecasts of stronger demand should boost U.S. cash crudes this week, traders, brokers and analysts said Monday. As West Texas Intermediate futures rebounded a bit from last week's swoon but stayed between $70 and $80 a barrel, trans-Atlantic and front-month spreads widened early Monday. Mars sour led the early cash crude reaction, jumping $1 to deal for $1.50 a barrel over WTI. Other grades were up less, Light Louisiana Sweet up 35 cents to $6.50 over. "Grades will continue to get a little stronger until the June to July spreads start to get better for June," one analyst said. Another analyst said an improving economy will start to push refiners to buy. "Refinery demand should be strong now as we press toward Memorial Day and July 4, so I think the refiners will be shopping for crude and picking up bargains on price dips," said Carl Holland of Connecticut-based Energy Trading Solutions. Refinery margins were mixed but relatively strong compared to the recent past, according to Credit Suisse's weekly report. Margins were up 91 cents to $12.82 a barrel in the Midwest, down 7 cents to $11.83 on the Gulf Coast and down 48 cents to $16.87 a barrel on the West Coast, Credit Suisse said. The WTI front-month spread widened to minus $3.57 at midmorning Monday from $2.78 at settlement Friday. The WTI-Brent spread gaped to minus $3.38 from $3.16. A widening of the time spread and Brent spread typically firm U.S. cash grades. (Reporting by Bruce Nichols) ((Email: b.nichols@thomsonreuters.com; +1 713 210 8510; Reuters Messaging: bruce.nichols.reuters.com@reuters.net)) Keywords: US CRUDE/OUTLOOK (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 2010. All rights reserved.

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