U.S. cash crude-LLS boxes popular first day of roll

*Traders expect Dec LLS to gain against WTI

*Roll stays between 50 and 60 cents all day

HOUSTON, Oct 21 (BestGrowthStock) – November-December box deals for
Light Louisiana Sweet (LLS-: ) were popular at $3.10 and $3.15
over West Texas Intermediate (CLc1: ) on the first day of roll in
the U.S. cash crude market Thursday.

The WTI-Brent spread (CL-LCO1=R: ) widened as December WTI
(CLZ0: ) began trading on the New York Mercantile Exchange
Thursday, and LLS was alone among U.S. cash crudes in selling 5
to 10 cents weaker than on Wednesday’s highest deal at plus
$3.20.

December LLS is therefore likely to sell stronger in coming
days, so traders can profit buying November and selling
December forward. Cash crude dealers can trade November until
the pipeline-scheduling deadline Monday even though NYMEX
futures have moved to December as the front month.

Weaker front-month WTI in spreads tends to lift cash crude
differentials, and there are other reason to expect December
LLS to sell stronger, traders and brokers said.

Refineries will be returning from fall maintenance outages
and imports priced against Brent, which is trading higher than
WTI, cannot profitably make the trans-Atlantic trip to compete
with LLS, a trader said.

Other U.S. cash crudes were mostly flat to slightly
stronger Thursday, with Mars sour (MRS-: ) selling up 10 cents at
$2.30 a barrel under WTI. For other deals, see [CRU/TU]

On futures markets, a stronger dollar drove prices down.
December WTI lost $1.98 to $80.56. December Brent (LCOZ0: ) shed
$1.77 to $81.83. Analysts cited a stronger dollar. [O/R]

The WTI-Brent spread widened to $1.26 from $1.06 at
settlement Wednesday. The December-January WTI spread (CL-1=R: )
moved to the front at minus 79 cents, wider by 5 cents.

The roll – the cost of pushing a contract forward into the
next month without delivering on it – lolled between minus 50
and 60 cents, reflecting the last November-December WTI
spread.

Weaker front-month WTI in spreads tends to support
differentials because cash crudes compete with imports priced
against Brent and deliver against second-month WTI.

Alaska North Slope crude oil for November delivery sold for
25 cents over WTI, 35 cents stronger than a deal Tuesday for
December delivery.

California crude buyers cut posted prices $1.20 a barrel.

———————————————-

See (REF/MARGIN1: ) for Reuters’ generic refining margins

See (CL-1=R: ) for the WTI front/second month spread

See (CL-LCO1=R: ) for front month WTI/Brent futures spread

See (BFO-: ) for Reuters’ assessment of Dated Brent

See (0#FRT-: ) for Reuters assessed tanker rates

See (BRNV: ) for assessed domestic crude differentials

See (PPGR: ) for outright U.S. cash crude prices

See [REF/US] for a list of U.S. refinery outages

See [EIA/S] for U.S. EIA inventory reports and forecasts

See [CRU/TU] for recent cash crude deals
____________________________________________________
(Reporting by Bruce Nichols;editing by Sofina Mirza-Reid)

U.S. cash crude-LLS boxes popular first day of roll