US Cash Crude-Inland grades firm as Cushing crude stocks fall

July 2 (Reuters) - Inland grades edged higher on Wednesday, dealers said, as crude stocks at the Cushing, Oklahoma, storage hub fell to near operational lows.

WTI Midland WTC-WTM and WTI at East Houston WTC-MEH, also known as MEH, rose 5 cents each.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.5 million barrels to 20.73 million barrels.

Overall crude inventories rose by 3.8 million barrels to 419 million barrels in the week ending June 27, the U.S. Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel draw.

Tank storage of below 20 million barrels, or between 10% and 20% of Cushing's over 98 million barrels of capacity, is considered close to operational lows, say traders. Below those levels the oil is difficult to remove.

Meanwhile, U.S. crude futures' discount to Brent widened to as much as minus $3.13 but still remained under the minus $4 a barrel needed to encourage exports. A narrower spread makes U.S. grades less attractive to foreign buyers.

U.S. exports of crude oil fell to 2.3 million barrels per day, the lowest since July 2023 and marked the steepest fall since January 2024, EIA data showed.

In the futures market, oil prices rose 3% on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog and the U.S. and Vietnam reached a trade deal, but the surprise build in U.S. crude supplies limited price gains somewhat.

* Light Louisiana Sweet WTC-LLS for August delivery was unchanged at a midpoint of a $2.00 premium and was seen bid and offered between a $1.80 and $2.20 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS was unchanged to a midpoint of a 5-cent premium and was seen bid and offered between a discount of 10 cents and 20-cent a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM gained 5 cents to a midpoint of a 45-cent premium and was seen bid and offered between a 20-cent and 70-cent a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS was unchanged at a midpoint of a 25-cent discount and was seen bid and offered between discount of 50 cents and parity to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a 40-cent and 90-cent a barrel premium to U.S. crude futures CLc1

* ICE Brent September futures LCOc1 rose $2 to $69.11 a barrel on Wednesday​.

* WTI August crude CLc1 futures rose $2 to $67.45 a barrel on Wednesday.

* The Brent/WTI spread WTCLc1-LCOc1 settled at minus $3.10, after hitting a high of minus $2.97 and a low of minus $3.13.