The outright prices for benchmark US Gulf Coast crudes Light Louisiana Sweet and Mars fell to their lowest level Tuesday since November 2010 as the NYMEX November crude contract plunged.
LLS -- the benchmark for light sweet Gulf Coast crudes -- was assessed 20 cents/b higher at WTI plus $3.15/b, but the outright price dropped $3.57/b to $94.98/b, its lowest since November 23, 2010, when it was $84.96/b.
Heavy sour Gulf Coast crude benchmark Mars remained unchanged at WTI minus 55 cents/b, but its outright price declined by $3.77/b to $81.28/b. Mars was also assessed at its lowest level since November 23, 2010, when it was assessed at $79.26/b.
The decline in the LLS and Mars prices are mostly attributable to a falling NYMEX November crude contract, which fell $3.77/b on Tuesday to $81.83/b. The NYMEX November crude contract has shed $12.38/b since September 25 on weakening global demand at the same time as strong supply.
Tuesday's fall in crude futures came as the International Energy Agency cut its oil demand growth forecast and key OPEC members show no signs of trying to halt the price slide yet.
The IEA cut its oil demand growth forecast for a fourth straight month on a continuation of weaker expectations regarding world economic growth, helping reinforce a perception of weak fundamentals.
Demand is expected to grow 1.1 million b/d to 93.5 million b/d in 2015, the Paris-based agency said.
