US Cash Products-Harbor mogas inches up on refinery outage

NEW YORK, April 17 (Reuters) - Gasoline differentials inched up in the New York Harbor after news that ConocoPhillips shut a gasoline-making unit at its Bayway refinery in Linden, NJ late Wednesday, traders said.

ConocoPhillips (COP.N) said an equipment malfunction at its 238,000 barrel per day Bayway refinery in Linden, New Jersey had caused a unit to shut down late Wednesday. Trader sources reported that the downed unit was a 145,000 gasoline-making fluid catalytic cracker.[ID:nN17417143]

In the Midwest's Group Three hub, gasoline values also dropped in what traders said was aggressive selling of excess barrels by ConocoPhillips.

Gasoline had begun to inch up in the Group market in recent days as inventories of the fuel in the Magellan pipeline dropped.

In other refinery news, Shell said repairs to a coking unit at its Deer Park, Texas refinery to take 5 to 7 days. Rates at the 332,000 bpd refeinry were reduced on Monday to perform unplanned work on the unit. [ID:nN17454160]

For a NYMEX futures report, click [O/N]

U.S. GULF COAST <0#P-USG>

Offers of prompt cycle 24 61-grade ultra-low sulfur diesel were pegged in range over the May heating oil screen.

"It's quiet. Cycle 61 is 13.25 to 13.75 cents," said one Gulf Coast trader.

Cycle 24 88-grade heating oil talked at 5.00 cents under the screen.

Prompt cycle 24 M2 conventional gasoline dropped a quarter point to trade at 8.25 cents under the May RBOB futures.

Prompt V2 traded at a 8 cent regrade to M2.

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Gasoline prices moved up slightly after news that ConocoPhillips had an unexpected shutdown at the catcracker in Bayway, New Jersey.

"Everything moved in 25 points," said one Harbor gasoline trader.

Buckeye pipeline cycle 82e M2 was pegged early at 9.75 cents under the screen, with cycle 83 at 10.00 cents under. Laurel pipeline barrels were seen at 8.50 cents under.

V2 barges were seen at 8.00 cents over the screen while Buckeye barrels were pegged at 7.00 cents over. Laurel Pipeline barrels were offered at 17.00 cents over the screen.

Distillates were slightly higher, with ultra-low sulfur diesel barrels off the Buckeye at 32.00 cents over. Heating oil traded at 3.50 cents over the screen.

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Group Three gasoline dropped 1.5 cents on Thursday, trading at 7 cents under the May RBOB board, with earlier deals done at 6.25 under with Conoco selling aggressively, traders said.

"The motive to sell today is that they have length in the Group 3 and need to sell some of their excess," said one Group trader.

Chicago gasoline, however, held Wednesday's level at 8 cents under the board.

Ultra-low sulfur diesel traded at 17.25 cents over the May heating oil print in the Group, gaining 1 cent from Wednesday levels as benchmark futures dipped.

In Chicago, ultra-low sulfur diesel was pegged at 16 cents over futures. (Reporting by Rebekah Kebede and Janet McGurty)