US Cash Crude-Grades firm even as benchmark prices weaken

HOUSTON, Dec 16 (Reuters) - U.S. cash crude grades strengthened on Tuesday even as benchmark prices weakened.

Mars strengthened 55 cents, while SGC rose 60 cents and Thunder Horse rose 50 cents.

Oil futures settled at their lowest level since February 2021 on Tuesday amid ongoing jitters surrounding oversupply and as the prospect of a Russia-Ukraine peace deal appeared to strengthen, raising expectations sanctions could be eased. O/R

The spread between WTI and Brent widened to as little as $3.77, the narrowest since August and smaller than the minus $4 level that encourages exports.

U.S. crude stocks fell, while fuel inventories rose last week, market sources said, citing American Petroleum Institute figures on Tuesday.

Crude stocks fell by 9.3 million barrels in the week ended December 12, the sources said on condition of anonymity.

• Light Louisiana Sweet for January delivery was unchanged at 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

• Mars Sour firmed 55 cents at a midpoint of an 80-cent discount and was seen bid and offered between a $1.00 and 60-cent a barrel discount to U.S. crude futures CLc1

• WTI Midland firmed 5 cents to a midpoint of a 35-cent premium and was seen bid and offered between a 10-cent and 60-cent a barrel premium to U.S. crude futures CLc1

• West Texas Sour eased 5 cents to a midpoint of a $1.95 discount and was seen bid and offered between a $2.20 and $1.70 a barrel discount to U.S. crude futures CLc1 ​

• WTI at East Houston, also known as MEH, traded between a 30-cent and 90-cent a barrel premium to U.S. crude futures CLc1

• ICE Brent February futures LCOc1 fell $1.64 to settle at $58.92 a barrel on Tuesday​.

• WTI January crude CLc1 futures fell $1.55 to settle at $55.27 a barrel on Tuesday​.

• The Brent/WTI spread narrowed 12 cents to last trade at minus $3.77, after hitting a high of minus $3.76 and a low of minus $3.90.