US Cash Crude-Grades steady in thin activity during holiday season

Dec 31 (Reuters) - Grades were steady on Tuesday, dealers said, amid thin trade during the holiday season and a narrow WTI-Brent spread.

The spread between U.S. West Texas Intermediate and Brent crude narrowed for the third session in a row on Tuesday, last trading at around minus $3.40 a barrel.

A narrower spread between the global benchmark and WTI, particularly under minus-$4, typically discourages transatlantic demand as traders see a closed arbitrage.

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

Crude stocks fell 1.4 million barrels in the week ended Dec. 27, the sources said on condition of anonymity. Gasoline inventories rose by 2.2 million barrels, and distillate stocks climbed by 5.7 million barrels, they said.

Elsewhere, the U.S. military said it carried out strikes against Houthi targets in Sanaa and coastal locations in Yemen on Monday and Tuesday.

The Iran-backed militant group has been attacking commercial shipping in the Red Sea for more than a year in solidarity with Palestinians amid Israel's year-long war in Gaza, threatening global oil flows.

* Light Louisiana Sweet WTC-LLS for February delivery was unchanged at a midpoint of a $2.30 premium and was seen bid and offered between a $2.10 and $2.50 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS was unchanged at a midpoint of a 30-cent premium and was seen bid and offered between a 15-cent and 45-cent a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM was unchanged at a midpoint of a 75-cent premium and was seen bid and offered between a 65-cent and 85-cent a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS was unchanged at a midpoint of a 25-cent discount and was seen bid and offered between a 35-cent and 15-cent a barrel discount to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a 95-cent and $1.15 a barrel premium to U.S. crude futures CLc1

* ICE Brent March futures LCOc1 rose 65 cents to settle at $74.64 a barrel on Tuesday

* WTI February crude CLc1 futures rose 73 cents to settle at $71.72 a barrel

* The Brent-WTI spread WTCLc1-LCOc1 narrowed to last trade at minus-$3.39, after hitting a high of minus-$3.35 and a low of minus-$3.46.

(Reporting by Georgina McCartney in Houston; Editing by Rod Nickel)

((Georgina.McCartney@tr.com))