US Cash Products-Chicago gasoline sinks on refinery restarts

* Chicago CBOB gasoline down 16 cents/gallon
* Group Three gasoline stronger on local outages
* New York Harbor distillates up on stock drawdown

NEW YORK, June 13 (Reuters) - Chicago CBOB gasoline fell sharply on
Wednesday on strong selling that followed the restart of units at regional
refineries and weekly government data that showed waning demand.
Cash CBOB gasoline in Chicago fell 16.00 cents a gallon to 16.00/18.00 cents
over July RBOB gasoline futures on the New York Mercantile Exchange, traders
said.
Two major refiners have reported the restart of units at their plants. Citgo
Petroleum said on Tuesday it completed turnaround work at its 167,000
barrels-per-day (bpd) refinery in Lemont, Illinois. The company had shut units
at the refinery for planned maintenance at the end of April.
BP Plc. also restarted a crude distillation unit at its 405,000-bpd
refinery in Whiting, Indiana, over the weekend. It had shut the unit for repairs
on June 1.
Also pushing differentials lower, data from the U.S. Energy Information
Administration (EIA) showed Midwest gasoline stocks fell 22,000 barrels last
week, which pointed to weak demand during the summer driving season when
gasoline use usually peaks.
Chicago ultra-low sulfur diesel also fell, down 2.00 cents a gallon to
14.00/17.00 cents over July heating oil futures.
Meanwhile, gasoline in the Midwest Group Three market rose 4.00 cents a
gallon to 20.50/21.50 cents over futures as allocations continued at Magellan
Midstream Partners' terminals due to a shortage of N-grade gasoline.
On the Gulf Coast, gasoline differentials retreated a day after the previous
cycle scheduled to move on the Colonial Pipeline, but still held earlier gains
on the outage of a new crude unit at Motiva Enterprises' 600,000
barrels-per-day (bpd) refinery in Port Arthur, Texas -- the nation's largest.
A2 CBOB on Wednesday fell 1.25 cents per gallon to 12.00 cents under July
RBOB futures on the NYMEX, near levels reached on Monday when news that the
Motiva outage could last two to five months pushed differentials up 5.00 cents.
Conventional M2 gasoline fell a penny per gallon on Wednesday to 9.00 cents
under, also near levels reached on Monday with a gain of 3.75 cents per gallon
on the Motiva news.
Gulf Coast jet fuel differentials were talked 2.25 cents per gallon higher
to 6.00/7.00 cents over July NYMEX heating oil futures on pipeline scheduling,
but no deals were seen done, traders said.
In the New York Harbor, ultra-low sulfur diesel rose 0.75 cents a gallon to
8.75 cents over July futures in early trading after EIA data showed the region
had the largest drop in distillate inventories last week.
East Coast distillate stocks fell by 797,000 barrels to 68 million barrels
in the week to June 8, the government data showed, leading the 63,000-barrel
drop in total U.S. distillate stocks. Midwest stocks declined by 618,000 barrels
while Gulf Coast inventories gained 1.3 million barrels, the EIA said.
In other government data, U.S. gasoline stocks fell by 1.72 million barrels
to 201.8 million barrels, driven by declines in the Gulf Coast and East Coast
regions that overrode a gain on the West Coast, the U.S. Energy Information
Administration said on Wednesday in its weekly inventory data release.
Gulf Coast stocks fell by 1.8 million barrels and East Coast inventories
slipped 1 million barrels, overriding a gain of 1.18 million barrels on the West
Coast. Midwest gasoline stocks fell by 22,000 barrels, the EIA said.
U.S. refinery utilization gained 1 percentage point to 92 percent last week,
its highest rate in nearly five years.
Among markets east of the Rockies, utilization in the East Coast and Gulf
Coast regions each rose by one percentage point to 84.1 percent and 93.8
percent, respectively. Midwest utilization gained 0.9 percentage points to 93.6
percent.

For more refinery news, please go to
Latest day
Timing NYMEX Bid Offer Change
Contract
U.S. GULF COAST * Scheduling
M2 conventional gasoline Cycle 35 JUL RBOB -9.25 -8.75 -1.00
61-grade ULSD Cycle 34 JUL HO 4.00 4.50 0.25
54-grade jet fuel * Cycle 34 JUL HO 6.00 7.00 2.25
Heating oil Cycle 35 JUL HO -1.25 -0.75 0.00
NEW YORK HARBOR
M2 conventional gasoline Prompt JUL RBOB 1.00 1.50 0.00
Any-Month JUL RBOB -2.50 -2.00 0.00
F2 RBOB Prompt JUL RBOB 10.00 11.00 0.00
Any-Month JUL RBOB 3.00 3.50 0.00
ULSD Prompt JUL HO 8.50 9.00 0.75
Any-Month JUL HO 8.50 9.00 1.50
Heating oil Prompt JUL HO 0.00 0.50 0.00
Any-Month JUL HO -0.25 0.25 0.00
Jet fuel Prompt JUL HO 8.50 9.50 0.50
Any-Month JUL HO 8.50 9.50 -0.50
MIDWEST
Chicago CBOB gasoline Cycle 2 JUL RBOB 16.00 18.00 -16.00
Chicago ULSD Cycle 2 JUL HO 14.00 17.00 -2.00
Group Three gasoline JUL RBOB 20.50 21.50 4.00
Group Three ULSD JUL HO 6.50 7.00 0.00