US Cash Crude- Grades fall on easing supply concerns

HOUSTON, Feb 2 (Reuters) - Crude grades fell on Monday, dealers said, on easing supply concerns as U.S. tensions with Iran de-escalated and Kazakh barrels returned to market.

Grades slipped on easing supply concerns after U.S. President Donald Trump said Iran was "seriously talking" with Washington, signaling a de-escalation of tensions with the OPEC member.

Elsewhere, oil production at Kazakhstan's giant Tengiz field has recovered further in the past few days, reaching nearly 20% of its capacity on Sunday following a full outage in mid January, two sources familiar with operational data said.

Meanwhile, the spread between WTI and Brent stayed wide, giving prices a floor. The spread was trading as wide as minus $4.65 during the session. A spread larger than minus $4 typically encourages export demand, driving prices higher.

On the demand side, U.S. oil refiners are expected to have about 1.24 million barrels per day (bpd) of capacity offline in the week ending February 06, increasing available refining capacity by 64,000 bpd, research company IIR Energy said on Monday.

Offline capacity is expected to fall to 1.20 million bpd in the week ending February 13, IIR said.

• Light Louisiana Sweet for March delivery fell 43 cents to a midpoint of a $1.35 premium and was seen bid and offered between a $1.25 and $1.45 a barrel premium to U.S. crude futures CLc1 ​

• Mars Sour fell 40 cents to a midpoint of a $1.30 discount and was seen bid and offered between a $1.40 and $1.20 a barrel discount to U.S. crude futures CLc1 ​

• WTI Midland fell 5 cents to a midpoint of a 80-cent premium and was seen bid and offered between a 70-cent and 90-cent a barrel premium to U.S. crude futures CLc1 ​

• West Texas Sour fell 5 cents to a midpoint of a $2.20 discount and was seen bid and offered between a $2.30 and $2.10 a barrel discount to U.S. crude futures CLc1 ​

• WTI at East Houston , also known as MEH, traded between a $1.05 and $1.25 a barrel premium to U.S. crude futures CLc1 ​

• ICE Brent April futures LCOc1 fell $3.02 to settle at $66.3 a barrel

• WTI March crude CLc1 futures fell $3.07 to settle at $62.14 a barrel

• The Brent/WTI spread narrowed 1 cent to last trade at minus $4.57, after hitting a high of minus $4.30 and a low of minus $4.65