US Cash Crude-Grades firm as Brent/WTI spread widens

Nov 12 (Reuters) - U.S. cash grade largely firmed on Wednesday, dealers said, as the discount between Brent and U.S. West Texas Intermediate crude widened to its most this month.

WTI Midland strengthened 15 cents, while Mars firmed 5 cents. WTI at East Houston, also known as MEH, strengthened 20 cents.

The spread between Brent and WTI widened to minus $4.25 earlier in the session. A spread larger than minus $4 typically encourages exports.

U.S. crude stocks rose by 1.3 million barrels in the week ended November 7, market sources said, citing American Petroleum Institute figures.

On the supply side, U.S. oil production is expected to set a larger record this year than previously forecast, even as global oil supply outpaces fuel demand, the Energy Information Administration said in its Short-Term Energy Outlook report on Wednesday.

Globally, the oil market will see a small surplus in 2026 after OPEC+ production increases and higher supply from other producers, an OPEC report showed on Wednesday, in a further shift from its earlier projections of a deficit.

Meanwhile, global oil and gas demand could grow until 2050, the International Energy Agency said on Wednesday.

• Light Louisiana Sweet for December delivery firmed to a midpoint of a $1.25 premium and was seen bid and offered between a $1.00 and $1.50 a barrel premium to U.S. crude futures CLc1 ​

• Mars Sour strengthened to a midpoint of a $1.45 discount and was seen bid and offered between a $1.65 and $1.25 a barrel discount to U.S. crude futures CLc1 ​

• WTI Midland firmed 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 eased to a midpoint of a $1.1 discount and was seen bid and offered between a $1.20 and $1.00 a barrel discount to U.S. crude futures CLc1 ​

• WTI at East Houston traded between a 60-cent and $1.10 a barrel premium to U.S. crude futures CLc1 ​

• ICE Brent January futures LCOc1 fell $2.45 to settle at $62.71 a barrel on Wednesday.

• WTI December crude CLc1 futures remained unchanged at $58.49 a barrel on Wednesday​.

• The Brent/WTI spread widened 6 cents to last trade at minus $4.23, after hitting a high of minus $4.11 and a low of minus $4.25.