U.S. Cash Crude - Sweet strengthens, sour steady

HOUSTON, May 16 (Reuters) - The leading Gulf Coast sweet
strengthened while sours held steady on the U.S. cash crude
market Friday.

Traders cited worldwide distillate demand as the reason.

Light Louisiana Sweet LLS- bulked up 50 cents to sell for
$3.90 over West Texas Intermediate CLc1. Mars Sour MRS-
sold for -$5.00 early, -$5.20 late, in the range of deals
Thursday.

Refiners have been maximizing diesel output in response to
margins more than triple returns available on gasoline. The
heating oil crack spread topped $28 Friday versus RBOB at $9.

Among futures, June WTI CLM8 climbed $2.17 to $126.29.

Saudi Arabia agreed to raise output 300,000 barrels a day
but Goldman Sachs forecast second-half prices averaging $141.

July Brent LCON8 rose $2.36 to $124.99.

Among cash grades, Heavy Louisiana Sweet HLS- sold for
+$3.35, up 10 cents. West Texas Sour WTS- dealt for -$4.50,
unchanged. WTI at Midland traded at -20 cents, about 10 cents
weaker.
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Please be advised that Reuters will begin including Alaska
North Slope crude and other West Coast crude oil commentary in
the daily U.S. Cash Crude market report on named item code
[CRU/C] in June and discontinue the daily U.S. West Coast crude
market report on named item code [CRU/W] at the same time.

Please contact Richard Valdmanis, Americas Energy Editor,
at 646-223-6056 or via email at
richard.valdmanis@thomsonreuters.com with any questions or
comments.
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DATA LINKS:
Energy Speed Guide ENERGY Crude Speed Guide <CRUDES/1>
NYMEX WTI futures <0#CL:> ICE Brent futures <0#LCO:>
US crude prices PPGR US crude differentials BRNV
Freight rates <0#FRT->
NEWS LINKS:
NYMEX Market reports [O/N] ICE market reports [O/L]
US Cash crude deals [CRU/TU] Foreign crude deals [CRU/T]
Dirty tanker news [TAN/CRU] Dirty tanker fixtures [TAN/D]
Weekly US oil data [EIA/S] US crude outlook [US/CRU]
US Refinery outages [REF/US] US Cash oil products [PRO/U]
US products outlook [US/PRO]
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(Reporting by Bruce Nichols; Editing by Walter Bagley)