REUTERS US Crude Outlook - Quiet early-March dealing likely

HOUSTON, Jan 26 (Reuters) - The U.S. cash crude market will
dawdle this week as traders await March refiner slates amid
narrower West Texas Intermediate futures spreads <CL-1=R>,
dealers and brokers said Monday.

After front-month WTI <CLc1> spreads touched a wide -$10 in
February trading on the New York Mercantile Exchange,
March-April spreads Monday were in the -$2.50 range in March
trading.

Front-month futures strengthening tends to weaken cash
crudes, and differentials that had soared in February dealing
began Monday in ranges still strong but closer to normal.

Also likely to weigh on cash differentials were U.S.
refining margins that weakened last week as crude prices rose
more than 10 percent, according to Credit Suisse's weekly
margin report.

The two largest U.S. refining regions had big refining
margin declines, with the Midwest sliding more than 50 percent
to $8.69 a barrel and the Gulf Coast dropping 45.9 percent to
$8.80 a barrel.