US Cash Crude-Grades ease on freight spike

Oct 28 (Reuters) - U.S. crude grades weakened on Tuesday, dealers said, as freight rates surged, hurting arbitrage, and as markets awaited clarity after U.S. sanctions last week on Moscow's top two crude exporters.

WTI Midland and WTI at East Houston, also known as MEH, eased 10 cents each.

Mars also eased 75 cents, with a trader attributing it to weakness stemming from a partial shutdown of the Al-Zour refinery in Kuwait, industry monitor IIR said.

Many Indian refiners, meanwhile, have paused new orders for Russian oil since U.S. sanctions last week on Moscow's top two crude exporters as they await clarity from the government and suppliers, with some turning to the spot market for alternatives, industry sources said.

On the demand side, the CEO of Saudi Arabian state oil company Aramco said on Tuesday crude oil demand was strong even before sanctions were imposed on Rosneft and Lukoil, and that Chinese demand was still healthy.

• Light Louisiana Sweet for November delivery eased 40 cents to a midpoint of a $1.00 premium and was seen bid and offered between a 80-cent and $1.20 a barrel premium to U.S. crude futures CLc1

• Mars eased 75 cents to a midpoint of a $1.15 discount and was seen bid and offered between a $1.30 and $1.00 a barrel discount to U.S. crude futures CLc1 ​

• WTI Midland eased 10 cents to a midpoint of a 50-cent premium and was seen bid and offered between a 25-cent and 75-cent a barrel premium to U.S. crude futures CLc1 ​

• West Texas Sour firmed to a midpoint of a 20-cent discount and was seen bid and offered between a discount of 50 cents​​ and 10-cent a barrel premium to U.S. crude futures CLc1

• WTI at East Houston, also known as MEH, traded between a 65-cent and $1.05 a barrel premium to U.S. crude futures CLc1 ​

• ICE Brent December futures LCOc1 fell $1.22 to settle at $64.40 a barrel.

• WTI December crude CLc1 futures fell $1.16 to settle at $60.15 a barrel.

• The Brent/WTI spread narrowed 3 cents to last trade at minus $4.28, after hitting a high of minus $4.16 and a low of minus $4.36.