Jan 27 (Reuters) - U.S. coastal crude grades Light Louisiana Sweet and Mars traded higher on Monday, dealers said, as the WTI-Brent spread widened to its largest discount since Jan. 13, according to LSEG.

The spread between U.S. West Texas Intermediate and Brent crude widened for the fourth straight session to as much as minus $3.97 per barrel. Minus $4 per barrel is typically considered the level that encourages U.S. exports.

In refining news, LyondellBasell Industries LYB.N began shuttering its 263,776 barrels per day (bpd) Houston refinery on Monday for permanent closure, said people familiar with plant operations.

The shutdown of the refinery is expected to be completed by early February as the refinery has only a few days of supply of crude oil on hand, the sources said.

U.S. oil refiners are expected to have about 1.4 million bpd of capacity offline in the week ending Jan. 31, decreasing available refining capacity by 195,000 bpd, research company IIR Energy said on Monday.

Offline capacity is expected to rise to 1.46 million bpd in the week ending Feb. 7, IIR added.

Oil production in Kazakhstan reached a daily record high of 278,499 metric tons on Sunday just after it embarked on an expansion of its largest oilfield, Chevron-led CVX.N Tengiz, according to official data.

Sunday's record high Kazakh output equates to around 2 bpd if a barrels per ton ratio of 7.5 is applied.

Elsewhere, U.S. crude oil stockpiles and gasoline were expected to have risen last week while distillate inventories likely fell, a preliminary Reuters poll showed on Monday.

Four analysts polled by Reuters estimated on average that crude inventories rose by about 3.7 million barrels in the week to Jan. 24.

* Light Louisiana Sweet WTC-LLS for March delivery rose 90 cents to a midpoint of a $2.60 premium and was seen bid and offered between a $2.50 and $2.70 a barrel premium to U.S. crude futures CLc1

* Mars Sour WTC-MRS rose 80 cents to a midpoint of a 50-cent premium and was seen bid and offered between a 40-cent and 60-cent a barrel premium to U.S. crude futures CLc1

* WTI Midland WTC-WTM was steady at a midpoint of a $1.05 premium and was seen bid and offered between a 80-cent and $1.30 a barrel premium to U.S. crude futures CLc1

* West Texas Sour WTC-WTS was unchanged at a midpoint of parity and was seen bid and offered between a discount of 20 cents 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 $1.35 and $1.55 a barrel premium to U.S. crude futures CLc1

* ICE Brent March futures LCOc1 fell $1.42 to settle at $77.08 a barrel

* WTI March crude CLc1 futures fell $1.49 to settle at $73.17 a barrel

* The Brent/WTI spread WTCLc1-LCOc1 widened 3 cents to last trade at minus $3.87, after hitting a high of minus $3.78 and a low of minus $3.97

(Reporting by Georgina McCartney in Houston; Editing by Jamie Freed)

((Georgina.McCartney@tr.com))