UPDATE 1-Sunoco in Q3 loss on refining squeeze, shares down

* Q3 loss per share 29 cents vs loss of 10 cents expected

* Revenue drops 43 pct

* Shares down 1 pct after-hours

SAN FRANCISCO, Nov 5 (Reuters) - Sunoco Inc (SUN.N) reported a quarterly loss on Thursday compared with a year-earlier profit as rising oil prices and weak demand for gasoline and diesel squeezed the refiner's margins.

Shares of Sunoco fell about 1 percent in after-hours trading, after closing 2.4 percent higher at $31.42.

The Philadelphia-based company reported a third-quarter net loss of $312 million, or $2.67 per share, compared with a year-ago profit of $549 million, or $4.70 per share.

Excluding one-time items, including a $278 million charge related to its idling of its Eagle Point refinery, Sunoco reported a loss of 29 cents per share.

Wall Street analysts, on average, had expected a loss of 10 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 43 percent to $8.695 billion. (Reporting by Braden Reddall in San Francisco; Editing by Phil Berlowitz)