U.S. cash crude grades weakened on Wednesday, dealers said, on a smaller-than-expected crude inventory draw and as U.S. crude's discount to Brent remained narrow.

U.S. crude stocks fell by 3.8 million barrels to 408.4 million barrels last week, the lowest level since September 2018, compared with analysts' expectations in a Reuters poll for a 4.5 million-barrel draw.

Crude stocks at the flagship Cushing, Oklahoma, delivery hubrose by 709,000 barrels, the EIA said, after falling nine straight weeks to below the operational minimum of around 20 million barrels.

Meanwhile, the WTI/Brent spread narrowed to a discount of $3.14, trading narrower than the minus $4 discount preferred by foreign buyers to snap up U.S. crude.

In global news, OPEC+ oil-producing countries will likely agree to a further hike in their output targets from August when they meet on Sunday, three sources said, adding to supply at a time of falling prices as the Strait of Hormuz gradually reopens.

Iran is determined to win international recognition of its control over the Strait of Hormuz and ability to levy fees on ships entering or leaving the Gulf even if it has to do so by force, two senior Iranian sources said.

  • Light Louisiana Sweet for August delivery eased 10 cents to a midpoint of a $1.15 premium and was seen bid and offered between a $1.00 and $1.30 a barrel premium to U.S. crude futures NYMEX:CL1! ​

  • Mars Sour eased $1 to a midpoint of a $4 discount and was seen bid and offered between a $4.25 and $3.75 a barrel discount to U.S. crude futures NYMEX:CL1! ​

  • WTI Midland eased 20 cents to a midpoint of a 25-cent discount and was seen bid and offered between ​ discount of 50 cents and parity to U.S. crude futures NYMEX:CL1!

  • West Texas Sour gained 80 cents to a midpoint of a $1.5 discount and was seen bid and offered between a $1.75 and $1.25 a barrel discount to U.S. crude futures NYMEX:CL1! ​

  • WTI at East Houston , also known as MEH, traded between a discount of 30 cents​​ and 20-cent a barrel premium to U.S. crude futures NYMEX:CL1! ​

  • ICE Brent September futures ICEEUR:BRN1! fell $1.38 to settle at $71.57 a barrel on Wednesday​.

  • WTI August crude NYMEX:CL1! futures fell 92 cents to settle at $68.58 a barrel on Wednesday​.

  • The Brent/WTI spread narrowed 54 cents to to last trade at minus $3.14, after hitting a high of minus $3.02 and a low of minus $3.75.