W.Africa Crude - Demand for grades subdued

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LONDON, July 16 (Reuters) - West African crude differentials were starting to edge up on Thursday but demand was still subdued for most of the market, traders said.

• While demand was still lower for most grades, one trader said that most physical grades' differentials had reached their lows, leading to some being offered at higher levels.

• The market was very volatile, another trader said.

• Asian refiners have been favouring U.S. WTI crude in recent purchases, the trader added. West African grades have received stiff competition from Latin American, U.S., and Middle Eastern grades in their core demand regions in recent weeks.

(Reporting by Seher Dareen and Robert Harvey; Editing by Kirsten Donovan)

((seher.dareen@thomsonreuters.com))