Cash differentials for Mars, Poseidon, Light Louisiana Sweet and other US Gulf of Mexico crudes were assessed at record highs Tuesday, as the Brent/WTI spread approached $13/b.
March-delivery Mars crude gained $1.15/b to be assessed at cash WTI plus $8.75/b, a record high, according to Platts data. The previous high for Mars was seen at cash WTI plus $7.80/b, set February 12, 2009.
Poseidon crude also moved to a record high at cash WTI plus $9.05/b, as Poseidon was seen at a premium of at least 25-30 cents/b to Mars, market sources said. Poseidon differentials hit a previous high of $7.95/b, also February 12, 2009.
Light Louisiana Sweet crude differentials also gained $1.25/b to hit a record high of cash WTI plus $14.75/b, moving past Monday's record of plus $13.60/b. Heavy Louisiana Sweet also hit a record high of cash WTI plus $14.35/b, as the HLS/LLS spread tightened up to minus $0.40/b.
The movements have mirrored the Brent/WTI blowout since the beginning of the year. With Brent and Brent-linked crude commanding such a high premium over WTI, market sources said Latin American crudes normally bound to the US Gulf Coast are now being shipped to Europe, providing more competition for US-produced crude. According to data released Tuesday by the American Petroleum Institute, US crude imports fell 1.058 million b/d for the week ended February 4, signalling increased demand for domestic crude.
Poseidon differentials were continued to be talked at a premium to Mars as market sources said one of three offshore platforms connected to the Poseidon crude pipeline had scheduled maintenance in February.
A spokesman for the Poseidon Oil Pipeline Company declined to comment.
Poseidon pipeline operator Enterprise Products Partners said earlier Tuesday that the pipeline, which delivers crude into Houma, Louisiana, will see some scheduled maintenance in March (See story, 1647 GMT).
