The U.S. domestic cash crude market was steady to softer early yesterday as the front to back spread in the futures market widened amid a drop in profit refining margins, traders said.

The May/June crude futures spread has widened almost 50 cents from last Friday, while refining margins have narrowed, pressuring price differentials for domestic grades.

WTI Postings plus gained 60 cents from Friday to talk at $4.75/4.80. Main domestic sour West Texas Sour/Midland traded at $2.90 under domestic benchmark WTI/Cushing, steady with Friday's values.

Benchmark WTI/Cushing was valued at $28.37/28.44 a barrel. Mars slipped 5 to 10 cents to talk at $4.10/3.80 under the benchmark.

Heavy Louisiana Sweet/ Empire was talked at $1.45/1.30 under WTI/Cushing from minus $1.65/1.30 the previous trading day.

Meanwhile, Nymex May crude oil and heating oil futures gained in late morning trade yesterday on spread play spurred by some short-term tightness in prompt month supplies.

At 11:16 a.m. (1516 GMT), Nymex May crude was 21 cents higher at $28.35, after rising to a session high of $28.58. It traded as low as $27.75 in the early going.

In London, IPE Brent reversed earlier losses to yo-yo to near parity yesterday, returning the market to backwardation on apparent front-month short-covering, dealers said.

By 1648 GMT, IPE Brent May crude - which expires at the end of today's session - was up three cents at $24.78. IPE gas oil futures settled up $9.25 to $216.25 a tonne.