US Cash Crude-Grades dip as WTI/Brent spread trades narrows, supply concerns ease

HOUSTON, April 8 (Reuters) - Cash crude grades eased on Wednesday for a third straight session, as the spread between WTI and Brent narrowed to its smallest in nearly a month, on hopes the Strait of Hormuz would reopen after U.S. President Donald Trump agreed to a two-week ceasefire with Iran.

Mars eased $2 to a premium of $4 to West Texas Intermediate crude at Cushing, its lowest in nearly two weeks, while WTI Midland weakened 80 cents to a $2 premium.

The Brent/WTI spread traded as narrow as minus $5.62, the slimmest since March 11, as some near term supply concerns eased on hopes that the Strait would reopen.

However, shippers on Wednesday said they needed more clarity on the terms of the U.S.-Iran ceasefire before resuming transit through the Strait of Hormuz, as Iran said the waterway remained closed to vessels sailing without a permit.

U.S. crude stocks rose to their highest level in almost three years last week, while fuel inventories declined on rising international demand, the Energy Information Administration said on Wednesday.

Crude inventories rose by 3.1 million barrels to 464.7 million barrels in the week ended April 3, the EIA said, compared with analysts' expectations in a Reuters poll for a 701,000-barrel rise. Stocks from the Strategic Petroleum Reserve fell by 1.7 million barrels to 413.3 million barrels.

In refining news, a diesel hydrotreater and the control room for multiple hydrotreating units at Valero’s VLO.N 380,000 barrel-per-day (bpd) Port Arthur, Texas, refinery were destroyed by a March 23 explosion and fire, sources said.

Exxon Mobil XOM.N plans overhauls in the spring and at the end of this year at its 612,000 barrel-per-day Beaumont, Texas refinery, sources said. L

• Light Louisiana Sweet for May delivery eased to a midpoint of a $5.25 premium and was seen bid and offered between a $5.00 and $5.50 a barrel premium to U.S. crude futures CLc1

• Mars Sour eased to a midpoint of a $4 premium and was seen bid and offered between a $3.80 and $4.2 a barrel premium to U.S. crude futures CLc1

• WTI Midland eased to a midpoint of a $3.2 premium and was seen bid and offered between a $3.00 and $3.40 a barrel premium to U.S. crude futures CLc1

• West Texas Sour eased to \a midpoint of a 20-cent premium and was seen bid and offered between parity and 40-cent​ a barrel premium to U.S. crude futures CLc1 ​

• WTI at East Houston , also known as MEH, traded between a $4.60 and $5.00 a barrel premium to U.S. crude futures CLc1 ​

• ICE Brent June futures LCOc1 fell $14.52 to settle at $94.75 a barrel on Wednesday​.

• WTI May crude CLc1 futures rose $3.09 and is currently trading at $97.5 a barrel on Wednesday​.

• The Brent/WTI spread narrowed $2.81 to to last trade at minus $7.08, after hitting a high of minus $5.62 and a low of minus $8.03.