US Cash Crude-Coastal grades weaken as tariff threats recede

March 19 (Reuters) - U.S. coastal cash crude grades weakened on Wednesday, dealers said, with Mars easing to its lowest in nearly two months.

Mars Sour WTC-MRS traded at a 65-cent premium to U.S. West Texas Intermediate crude, the lowest since late January.

The grade had surged in recent weeks on worries of a heavy crude shortage due to U.S. President Donald Trump's tariffs on Mexico and Canada.

U.S. crude imports from Canada fell to the lowest in two years, U.S. Energy Information Administration data showed, after President Donald Trump's administration imposed tariffs on imported crude from its northern neighbor.

U.S. crude inventories, meanwhile, rose by 1.7 million barrels to 437 million barrels last week, the EIA said, compared with analysts' expectations in a Reuters poll for a 512,000-barrel rise.

In refining news, U.S. oil refiners are expected to have about 1.3 million barrels per day of capacity offline in the week ending March 21, decreasing available refining capacity by 554,000 bpd, research company IIR Energy said on Wednesday.

Light Louisiana Sweet WTC-LLS held steady at a midpoint of a $2.60 premium and was seen bid and offered between a premium of $2.40 and $2.80 a barrel to U.S. crude futures CLc1

Mars Sour WTC-MRS eased 25 cents to a midpoint of a 65 cent premium and was seen bid and offered between a premium of 50 cents and 80 cents a barrel to U.S. crude futures CLc1.

WTI Midland WTC-WTM eased 5 cents to a midpoint of a $1.10 premium and was seen bid and offered between a premium of 90 cents and $1.30 a barrel to U.S. crude futures CLc1.

West Texas Sour WTC-WTS was largely unchanged at a midpoint of a premium of 25 cents and was seen bid and offered between a flat and 50 cents a barrel premium to U.S. crude futures CLc1.

WTI at East Houston WTC-MEH, also known as MEH, traded between a premium of $1.20 and $1.50 a barrel to U.S. crude futures CLc1.

ICE Brent May futures LCOc1 rose 22 cents to settle at $70.78 a barrel on Monday.

WTI April crude CLc1 futures rose 26 cents to settle at $67.16 a barrel on Monday.

The Brent/WTI spread WTCLc1-LCOc1 widened 4 cents to last trade at minus $3.85, after hitting a high of minus $3.78 and a low of minus $3.87.