US Cash Crude-Grades little changed as Fed holds interest rates steady

May 7 (Reuters) - U.S. cash crude differentials were broadly steady on Wednesday, dealers said, as the Federal Reserve held interest rates steady.

Still, the Fed also said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the U.S. central bank grapples with the impact of Trump administration tariff policies.

Meanwhile, U.S. crude inventories fell by 2 million barrels to 438.4 million barrels in the week, Energy Information Administration data showed, compared with analysts' expectations in a Reuters poll for an 833,000-barrel draw. EIA/S

Oil futures edged lower as investors priced in a build in gasoline inventories in the U.S. ahead of the U.S.-China trade talks this weekend.

Oil markets have been declining since last week after Saudi Arabia said it could withstand a period of lower oil prices, and the Organization of the Petroleum Exporting Countries and allies over the weekend agreed to accelerate output increases.

In refining news, U.S. oil refiners are expected to have about 1.2 million barrels per day (bpd) of capacity offline in the week ending May 9, increasing available refining capacity by 435,000 bpd, research company IIR Energy said on Wednesday.

Light Louisiana Sweet WTC-LLS for May delivery was seen bid and offered between a $2.10 and $2.30 a barrel premium to U.S. crude futures CLc1

Mars Sour WTC-MRS weakened 5 cents at a midpoint of a $1.35 premium and was seen bid and offered between a $1.25 and $1.45 a barrel premium to U.S. crude futures CLc1

WTI Midland WTC-WTM was little changed at a midpoint of a 70-cent premium and was seen bid and offered between a 60-cent and 80-cent a barrel premium to U.S. crude futures CLc1

West Texas Sour WTC-WTS traded at a midpoint of a 15-cent discount and was seen bid and offered between a 25-cent and 5-cent a barrel discount to U.S. crude futures CLc1

WTI at East Houston WTC-MEH, also known as MEH, traded between a 75-cent and 95-cent a barrel premium to U.S. crude futures CLc1

ICE Brent July futures LCOc1 fell $1.03 to settle at $61.12 a barrel

WTI June crude CLc1 futures fell $1.02 to settle at $58.07 a barrel

The Brent/WTI spread WTCLc1-LCOc1 narrowed to last trade at minus $3.40, after hitting a high of minus $3.37 and a low of minus $3.46.