US Cash Crude-Grades slip as WTI/Brent spread narrows

Oct 2 (Reuters) - Grades broadly slipped on Thursday, dealers said, as the spread between U.S. crude futures and the global benchmark Brent narrowed, weighing on export demand.

U.S. crude futures' discount to Brent narrowed to minus $3.95 a barrel. A narrower spread makes U.S. grades less attractive to foreign buyers. Earlier in the session, the discount narrowed to as little as minus $3.87, its smallest since August 29, according to data from LSEG.

Minus $4 per barrel is typically considered the level that encourages U.S. exports and drives grades higher, as traders see an open arbitrage route.

OPEC's oil output rose further in September after an OPEC+ agreement to raise production, a Reuters survey found on Thursday, mainly due to higher production by the United Arab Emirates and Saudi Arabia.

• Light Louisiana Sweet for November delivery fell 7 cents to a midpoint of a $2.23 premium and was seen bid and offered between a $2.15 and $2.30 a barrel premium to U.S. crude futures CLc1

• Mars Sour was steady at a midpoint of a 55-cent discount and was seen bid and offered between a 65-cent and 45-cent a barrel discount to U.S. crude futures CLc1

• WTI Midland fell 10 cents to a midpoint of a 75-cent premium and was seen bid and offered between a 65-cent and 85-cent a barrel premium to U.S. crude futures CLc1 ​

• West Texas Sour fell 20 cents to a midpoint of parity and was seen bid and offered between a discount of 15 cents​​ and a 15-cent a barrel premium to U.S. crude futures CLc1​

• WTI at East Houston, also known as MEH, traded between a 95-cent and $1.15 a barrel premium to U.S. crude futures CLc1 ​

• ICE Brent December futures LCOc1 fell $1.24 to settle at $64.11 a barrel

• WTI November crude CLc1 futures fell $1.30 to settle at $60.48 a barrel

• The Brent/WTI spread narrowed 1 cent to last trade at minus $3.95, after hitting a high of minus $3.87 and a low of minus $4.01