US Cash Crude-Grades up as US rig count hits three-year low

Jan 17 (Reuters) - Physical U.S. crude grades broadly rose on Friday, dealers said, after the domestic rig count fell to a three-year low, with West Texas Sour bucking the wider upward trend.

U.S. energy firms this week cut the number of oil and natural gas rigs operating for a second week in a row to the lowest since December 2021, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, fell by four to 580 in the week to Jan. 17.

U.S. oil refiners are expected to have about 1.1 million barrels per day (bpd) of capacity offline in the week ending Jan. 17, decreasing available refining capacity by 485,000 bpd, research company IIR Energy said on Friday.

Offline capacity is expected to rise to 1.39 million bpd in the week ending Jan. 24, and then fall to 1.28 million bpd in the subsequent week, IIR added.

* Light Louisiana Sweet WTC-LLS for February delivery rose 45 cents to a midpoint of a $2.15 premium and was seen bid and offered between a $1.60 and $2.70 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS rose 5 cents to a midpoint of parity and was seen bid and offered between a discount of 10 cents and a 10-cent a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM rose 10 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 WTC-WTS fell 5 cents to a midpoint of a 10-cent premium and was seen bid and offered between parity and a 20-cent a barrel premium to U.S. crude futures CLc1

* WTI at East Houston WTC-MEH, also known as MEH, traded between a 75-cent and 95-cent a barrel premium to U.S. crude futures CLc1

* ICE Brent March futures LCOc1 fell 50 cents to settle at $80.79 a barrel

* WTI February crude CLc1 futures fell 80 cents to settle at $77.88 a barrel

* The Brent/WTI spread WTCLc1-LCOc1 narrowed to last trade at minus $3.37, after hitting a high of minus $3.28 and a low of minus $3.52

(Reporting by Georgina McCartney in Houston; Editing by Nia Williams)

((Georgina.McCartney@thomsonreuters.com))