U.S. cash crude prices gainNew York

U.S. Crude grade differentials traded stronger in the U.S. cash crude market yesterday as crude futures sank on expectations a war in Iraq would be short and involve minimal supply disruptions, traders said.

Deepwater sour Mars crude, which competes with other foreign grades, was pegged 20 cents stronger at $7.05/6.70 under benchmark WTI/ Cushing. Poseidon, another deepwater grade, traded 45 cents stronger at WTI/Cushing minus $6.55.

WTI postings plus dropped 30 cents to be pegged at $5.65/5.73. The main domestic sour grade, WTS/Midland, traded up 50 cents at $5.00 under the benchmark.

Light Louisiana Sweet/ St. James, main sweet crude, traded at "evens" to the benchmark, up 20 cents.

Heavy Louisiana Sweet/ Empire was stead at WTI/ Cushing minus 80 to 70 cents. WTI/Midland was steady but more widely pegged at -8/+5 cents to the benchmark. Eugene Island was steady at $3.60 and $3.50 under the benchmark, while Bonito gained 20 cents at $2.50/2.30 under the benchmark.

Benchmark WTI/Cushing was valued at $32.42/34.49 a barrel.

Meanwhile, Nymex crude oil futures sank nearly 10 per cent in midday trade yesterday.

At 12:15 p.m. EST (1715 GMT), Nymex April crude traded $2.63 lower at $32.30 a barrel. The contract earlier plunged $3.43 to $31.50, down 9.8 percent on the day. It peaked at $33.40. The day's low extended the slump from overnight levels and is the weakest since a January. 13 low of $31.13. May crude was down $2.39 at $30.15.

Nymex April heating oil futures traded 4.27 cents lower at 87.30 cents a gallon, trading 85.80 to 89.00 cents. Since its high of $1.13 on March 10, the contract has lost 25 percent.

Nymex April gasoline futures traded 5.51 cents lower at 97.20 cents a gallon, moving from 96.20 to 99.50 cents. From a high of $1.1630 cents on March 10, the contract has sank 20 cents or 17 per cent.

In London, IPE Brent crude futures yesterday bounced back a little from their slump on expectation of a curt campaign against Iraq, although still near three-month lows.

By 1528 GMT, May Brent crude futures were $1.48 a barrel lower at $28 a barrel, bouncing back from a session low of $26.40, the lowest level since early December.

IPE gas oil futures ended $6 lower at $264 a tonne, also recovering some intraday losses.