* Crude futures settle lower, U.S. June contract expires * Brent/U.S. crude spread narrows slightly NEW YORK, May 21 (Reuters) - Cash crude differentials in theUnited States were mostly weaker on Tuesday, a day ahead of thethree-day roll period in the cash market, as the transatlanticspread between Brent and U.S. crude futures narrowed, tradersand brokers said. The front-month U.S. June crude contract expired onTuesday. The "roll" is the three-day period after the expirationof a front-month U.S. light sweet crude contract. While cash crude trades are usually priced against the U.S.light sweet crude futures contract, during the roll period thedifferentials for U.S. crude grades are measured against theprice for West Texas Intermediate (WTI) at the Cushing,Oklahoma, hub . The differential in a roll-price trade represents theapproximate value of the difference between the expiredfront-month contract and the nearby contract, in this case theJune and July contracts. On Tuesday, Brent's premium to U.S. crude endedat $7.73 a barrel based on July contract settlements, afterending at $7.87 on Monday. The spread traded from $7.40 to $8.09during Tuesday's session. Usually, the wider the arbitrage, the more supportive forU.S. cash crude differentials, while a narrower spread oftenpressures differentials. This holds especially for sweet gradesthat are priced in line with other global waterborne crudes suchas Brent. CASH CRUDE TRADES In the U.S. cash crude market, Light Louisiana Sweet for June delivery traded at $9.70, $9.75 and $9.80 over the U.S.June crude futures contract, also known by its crudegrade of West Texas Intermediate (WTI). WTI is the U.S. light, sweet crude contract's benchmarkgrade deliverable at Cushing, Oklahoma. Those LLS trades were weaker after Monday trades completedfrom $9.80 to $10.80 over the benchmark. Heavy Louisiana sweet crude traded at $8.80 and $9.00 overthe benchmark, weaker after trading Monday at $9.70 over. A Gulf of Mexico-produced grade, Mars sour , had Junebarrels traded $3.35 to $3.90 above the benchmark futures,weaker after Monday's trades at $4.50 and $4.90 over. July barrels of Mars traded from $3.70 to $3.85 over thebenchmark futures, weaker after Monday's trades at $4.25, $4.45and $4.80 over the benchmark. Eugene Island crude traded at $6.15 and $6.25 overthe benchmark futures, weaker after trading on Monday at $7.20above the benchmark. Bonito sour crude traded at $6.15 and $6.20 above thebenchmark futures, weaker after Monday's trade at $7.30 abovethe benchmark. MIDLAND GRADES West Texas Intermediate crude at Midland traded at 5to 35 cents under the benchmark futures, weakening afterMonday's trades at 15 and 20 cents over. West Texas Sour crude, also at Midland, traded at 25cents under the benchmark, weaker after Monday's trade at 20cents over the benchmark. Midland crude grades have had differentials above thebenchmark futures recently on support from expectations for, andthen the restart this month of a crude distillation unit atValero Energy Corp's McKee, Texas, refinery. Also supporting Midland differentials in recent weeks wereincreases in pipeline capacity from the West Texas region to theU.S. Gulf Coast refineries. CRUDE FUTURES SLIP Brent July crude fell 89 cents, or 0.85 percent, tosettle at $103.91 a barrel, having traded from $103.51 to$105.15. Expiring Brent June crude settled and went offthe board last Thursday at $103.80 a barrel. On Tuesday, expiring U.S. June crude fell 55 cents,or 0.57 percent, to settle go off the board at $96.16 a barrel,having traded from $95.50 to $96.97. U.S. July crude fell 75 cents to settle at $96.18 abarrel. (Reporting by Robert Gibbons)
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