US Cash Crude- WTI Midland drops for third session to lowest since January

Feb 28 (Reuters) - Inland physical crude oil grades weakened on Tuesday, dealers said, with WTI Midland dropping for the third consecutive session to its lowest since January, following news of refineries shutting crude units in recent days. WTI Midland fell 15 cents to a midpoint of a $1.85 premium, its weakest since Jan. 26. West Texas Sour fell a quarter of a dollar to a midpoint of a 65-cent discount,
the weakest since Feb. 3. Repairs are continuing on the diesel hydrotreater at PBF Energy's 190,000-barrel-per-day (bpd) Chalmette, Louisiana, refinery, people familiar with plant operations said. The 27,000-bpd hydrotreater could restart as early as next week but is expected to return by the second weekend in March, the sources said. Motiva Enterprises shut the large coker on Monday at its 626,000-barrel-per-day (bpd) Port Arthur, Texas, refinery, people familiar with plant operations said. The 110,000-bpd DCU-2 coker is scheduled to be closed for two weeks of repairs, the sources said. Moreover, the small crude distillation unit (CDU) at Pemex's 312,500 bpd Deer Park, Texas, refinery was shut following a Thursday night fire, said people familiar with plant operations on Friday. A fire broke out on the 70,000-bpd CDU-1 on Thursday night, the sources said. The 270,000-bpd CDU-2 remains in operation at the refinery. In U.S. supply, crude oil inventories rose last week, while fuel stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday. Crude stocks rose by about 6.2 million barrels in the week ended Feb. 24, they said. Gasoline inventories fell by about 1.8 million barrels, while distillate stocks fell by about 340,000 barrels, said the sources on condition of anonymity.
* Light Louisiana Sweet for March delivery fell 15 cents to a midpoint of a $2.85 premium and was seen bid and offered between a $2.75 and $2.95 a barrel premium to U.S. crude futures
* Mars Sour gained 40 cents at a midpoint of a 70-cent discount and was seen bid and offered between a 80-cent and 60-cent a barrel discount to U.S. crude futures ?

* WTI Midland fell 15 cents to a midpoint of a $1.85 premium and was seen bid and offered between a $1.75 and $1.95 a barrel premium to U.S. crude futures ?

* West Texas Sour fell a quarter of a dollar to a midpoint of a 65-cent discount and was seen bid and offered between a 75-cent and 55-cent a barrel discount to U.S. crude futures
* WTI at East Houston , also known as MEH, traded between a $1.95 and $2.15 a barrel premium to U.S. crude futures
* ICE Brent April futures rose $1.44 to settle at $83.89 a barrel on Tuesday?.

* WTI April crude futures rose $1.37 to settle at $77.05 a barrel on Tuesday?.

* The Brent/WTI spread last narrowed 3 cents to minus $6.20, after hitting a high of minus $6.02 and a low of minus $6.26. (Reporting by Stephanie Kelly; Editing by Richard Chang)