US Cash Crude-WTI Midland holds near 2-1/2-year low

June 16 (Reuters) - Grade differentials were little changed on Monday, dealers said, with WTI Midland trading at its lowest in two and a half years as tight inventories and worries about geopolitical tensions strengthened prices at the hub.

WTI Midland WTC-WTM held steady at a 35-cent premium to oil at the Cushing storage hub, while WTI at East Houston WTC-MEH, also known as MEH, was unchanged at a 45-cent premium.

The spread between WTI and Brent widened as much as minus $3.22, but was last trading around minus $2.94. A narrower spread, particularly under minus $4, cuts exports as it is less attractive for foreign buyers to purchase U.S. crude.

"Strong domestic runs have been contributing to tightening US balances, including at Cushing, supporting WTI pricing and keeping the cost of US exports elevated," analysts at Energy Aspects wrote in a note.

"This is in turn pressuring MEH differentials at a time when the European and Asian markets are not seeking incremental light-sweet supply."

Medium sour grades such as Mars and SGC continued to remain strong due to lower supply of heavy Canadian crude as a result of wildfires, and as a period granted by Washington to wind down purchases of Venezuelan crude by U.S. companies expired in late May.

Oil prices slipped $1 per barrel on Monday in volatile trading after reports that Iran is seeking an end to hostilities with Israel, raising the possibility of a truce and easing fears of a disruption to crude supplies from the region.

OPEC said on Monday it expected the global economy to remain resilient in the second half of this year and trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group in 2026.

* Light Louisiana Sweet WTC-LLS for July delivery eased to a midpoint of a $2.90 premium and was seen bid and offered between a $2.80 and $3.00 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS eased to a midpoint of a $1.60 premium and was seen bid and offered between a $1.40 and $1.80 a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM was unchanged at a midpoint of a 35-cent premium and was seen bid and offered between a 15-cent and 55-cent a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS eased to a midpoint of a 30-cent discount and was seen bid and offered between a 50-cent and 10-cent a barrel discount to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a 25-cent and 65-cent a barrel premium to U.S. crude futures CLc1

* ICE Brent August futures LCOc1 fell $1 to settle at $73.23 a barrel on Monday

* WTI July crude CLc1 futures fell 70 cents and is currently trading at $71.07 a barrel

* The Brent/WTI spread WTCLc1-LCOc1 was flat at minus $2.94, after hitting a high of minus $2.75 and a low of minus $3.22