US Gulf benchmark crudes continued to fall early Tuesday as the WTI-Brent spread narrowed by $3.09/barrel.
The Light Louisiana Sweet differential was heard to trade Tuesday at WTI plus $21.50/b, down $3.65/b from Platts Monday assessment and $6.75/b lower than Friday.
The Mars differential was heard to trade Tuesday at WTI plus $15.75/b, a $2.75/b decrease from Monday's assessment and down $5.50 from Friday.
The WTI-Brent spread narrowed from Platts assessment Monday of minus $20.21/b to minus $17.12/b Tuesday morning. Market sources said the more narrow spread was directly affecting the decrease in the US Gulf differentials as those regional crude prices can be more closely tied to Brent.
The narrowing of the spread was a result of the NYMEX front month contract hitting its highest level since August 2 at $94.65/b in overnight trade after the NYMEX curve slipped into backwardation for the first time since November 20, 2008
