US Cash Crude-Mars hits 2-week high as refiners scramble for heavy crude alternatives

Feb 27 (Reuters) - U.S. cash crude prices were mixed on Thursday, dealers said, with the Mars Sour grade reaching a two-week high on supply concerns after U.S. President Donald Trump axed Chevron's Venezuela crude license.

Wednesday's cancellation of Chevron's license to operate in sanctioned Venezuela could lead to the negotiation of a fresh agreement between the U.S. producer and state company PDVSA to export crude to destinations other than the United States, sources close to the talks said, buoying coastal grades.

Venezuela's crude accounted for 13% of imports by U.S. Gulf Coast refineries last year, according to U.S. Energy Information Administration data.

"The heavy sour crude from there is well suited to U.S. Gulf Coast oil refiners, so it will be missed locally," a trader said.

Light Louisiana Sweet WTC-LLS for April delivery rose 80 cents to a midpoint of a $4.00 premium and was seen bid and offered between a $3.90 and $4.10 a barrel premium to U.S. crude futures CLc1

Mars Sour WTC-MRS rose 45 cents to a midpoint of a $2.15 premium and was seen bid and offered between a $2.05 and $2.25 a barrel premium to U.S. crude futures CLc1

WTI Midland WTC-WTM fell 5 cents to a midpoint of a $1.05 premium and was seen bid and offered between a 95-cent and $1.15 a barrel premium to U.S. crude futures CLc1

West Texas Sour WTC-WTS fell 22 cents to a midpoint of a 58-cent premium and was seen bid and offered between a 35-cent and 80-cent a barrel premium to U.S. crude futures CLc1

WTI at East Houston WTC-MEH, also known as MEH, traded between a $1.15 and $1.35 a barrel premium to U.S. crude futures CLc1

ICE Brent April futures LCOc1 rose $1.51 to settle at $74.04 a barrel

WTI April crude CLc1 futures rose $1.73 to settle at $70.35 a barrel

The Brent/WTI spread WTCLc1-LCOc1 narrowed 22 cents to last trade at minus $3.69, after hitting a high of minus $3.64 and a low of minus $4.00