HOUSTON, July 2 (Reuters) - U.S. coastal cash crude grades weakened on Thursday, dealers said, as flows through the Strait of Hormuz recovered rapidly, pushing up global supply.

Kuwait's crude oil production rose sharply to 1.65 million barrels per day in June from 580,000 bpd in May, a source familiar with the matter told Reuters on Thursday, as the OPEC member boosts exports through the Gulf following the U.S.-Iran interim peace agreement.

The jump in Kuwaiti output adds to signs that Gulf oil flows through the Strait of Hormuz recovered following disruption caused by the Iran war, with stranded cargoes gradually clearing the Strait of Hormuz and exporters restoring production.

Meanwhile, at least five supertankers carrying a total of 10 million barrels of Saudi oil loaded from Ras Tanura have exited the Strait of Hormuz, with Saudi Aramco switching to spot pricing to speed sales in Asia, according to trade sources and shipping data.

The WTI/Brent spread widened to a discount of $3.19, but traded narrower than the minus $4 discount preferred by foreign buyers to snap up U.S. crude.

Oil rig count, an early indicator of future supply, rose by five to 445 this week, their highest since late May 2025, energy services firm Baker Hughes said in its closely followed report on Thursday.

• Light Louisiana Sweet for August delivery eased 85 cents to a midpoint of a 30-cent discount and was seen bid and offered between a discount of $1.00​​ and 40-cent a barrel premium to U.S. crude futures CLc1

• Mars Sour eased $1 at a midpoint of a $5 discount and was seen bid and offered between a $5.50 and $4.50 a barrel discount to U.S. crude futures CLc1

• WTI Midland firmed 5 cents to a midpoint of a 20-cent discount and was seen bid and offered between discount of 40 cents and parity to U.S. crude futures CLc1

• West Texas Sour remained flat at a midpoint of a $1.5 discount and was seen bid and offered between a $2.00 and $1.00 a barrel discount to U.S. crude futures CLc1

• WTI at East Houston , also known as MEH, traded between a discount of 20 cents​​ and 30-cent a barrel premium to U.S. crude futures CLc1

• ICE Brent September futures LCOc1 rose 23 cents to settle at $71.8 a barrel on Thursday​.

• WTI August crude CLc1 futures remained unchanged at $68.69 a barrel on Thursday​.

• The Brent/WTI spread widened 13 cents to to last trade at minus $3.19, after hitting a high of minus $2.90 and a low of minus $3.20.