US Cash Products-Chicago diesel gains on demand, refinery work

* Chicago ULSD buoyed on strong demand, talk of refinery work
* Harbor jet fuel down on incoming supply
* Gulf gasoline up on pipeline scheduling

HOUSTON, July 11 (Reuters) - Chicago ultra-low sulfur diesel differentials
rose on Wednesday, buoyed by strong demand and talk of planned refinery work in
the region.
Chicago ULSD traded at 7.50/8.00 cents over the August heating oil futures
contract on the New York Mercantile Exchange, up 2.25 cents a gallon.
Husky Energy said it will perform planned maintenance at its
155,000 barrels-per-day refinery in Lima, Ohio, next week after it changed
earlier plans to begin work on Monday. Husky also said the work would not affect
production.
Chicago CBOB gasoline fell a quarter cent per gallon to 14.00/12.50 cents
under August NYMEX RBOB futures, capping the 15.00-cent drop it logged since
last week.
In the New York Harbor, jet fuel differentials reversed a recent rally and
fell 2.00 cents a gallon to 16.00 cents over August heating oil futures as
shipments from the Gulf Coast arrived on the Colonial Pipeline, traders said.
In the Harbor gasoline markets, RBOB gasoline for delivery on July 20 traded
at 11.00 cents over August RBOB gasoline futures, and reoffered at that level,
down about 2.00 cents a gallon.
On the Gulf Coast, gasoline markets showed gains on Wednesday as their
latest five-day lifting cycles scheduled to move on the Colonial.
A2 CBOB formulated for blending with 10 percent ethanol climbed 3.50 cents
per gallon to 20.75 cents under August NYMEX RBOB futures. The move more than
reversed Tuesday's 3.25-cent decline on sluggish demand and news that Valero
Energy Corp was ramping up a gasoline-making fluid catalytic cracking
unit at its 88,000 barrels-per-day refinery in Houston.
Valero said on Wednesday that the unit was back to planned rates.

Conventional M2 differentials gained 0.75 cent per gallon to 16.25 cents
under on Wednesday, traders said.
However, distillate markets went south on Wednesday after the U.S. Energy
Information Administration said distillate stocks in the region gained 1.33
million barrels last week.
Gulf ULSD slipped 1.75 cents per gallon to a bid-offer spread of 7.75/8.25
cents over August NYMEX heating oil futures, while jet fuel fell a penny per
gallon to 8.75 cents over.
The EIA said U.S. distillate stocks gained 3.1 million barrels to 120.9
million barrels last week.
In addition to the notable gain in Gulf Coast distillate inventories, East
Coast stocks showed a bigger increase at 1.63 million barrels. Midwest stocks
declined by 705,000 barrels.
U.S. gasoline stocks rose by 2.75 million barrels to 207.7 million barrels,
reflecting increases in all regions. Of those east of the Rockies, the East
Coast climbed by 1.1 million barrels, followed by an 816,000-barrel gain in Gulf
Coast stocks and a 457,000-barrel gain in Midwest inventories, the EIA said.
U.S. refinery utilization rose by 0.7 percentage points to 92.7 percent last
week, its highest level since 2007. However, overall capacity shrunk to 17.3
million barrels per day 17.7 million barrels per day a year ago because of some
refinery closures, the EIA said.
Among markets east of the Rockies, Gulf Coast utilization gained 1.2
percentage points to reach 94.2 percent, reflecting a unit startup at Total's
232,000 barrels-per-day (bpd) refinery in Port Arthur, Texas,
and completion of planned work at Citgo Petroleum's 160,000 bpd
refinery in Corpus Christi, Texas.
Midwest utilization slipped 0.3 percentage points to 92.7 percent, while
East Coast utilization was unchanged at 81.4 percent, the EIA said.

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Latest day
Timing NYMEX Bid Offer Change
Contract
U.S. GULF COAST * Scheduling
M2 conventional gasoline * Cycle 40 RBOB -16.50 -16.00 0.75
61-grade ULSD Cycle 40 HO 7.75 8.25 -1.75
54-grade jet fuel Cycle 40 HO 8.50 9.50 -1.00
Heating oil Cycle 40 HO -2.75 -2.25 0.00

NEW YORK HARBOR
M2 conventional gasoline Prompt RBOB -0.50 0.50 0.00
Any-Month RBOB -4.00 -3.50 0.25
F2 RBOB Prompt RBOB 15.00 16.00 0.00
Any-Month RBOB 4.75 5.25 0.00
ULSD Prompt HO 13.50 14.50 -0.50
Any-Month HO 13.50 14.50 -0.50
Heating oil Prompt HO 0.00 1.00 0.00
Any-Month HO 0.00 1.00 0.00
Jet fuel Prompt HO 15.00 17.00 -2.00
Any-Month HO 15.00 17.00 -2.00

MIDWEST
Chicago CBOB gasoline Cycle 2 RBOB -14.00 -12.50 -0.25
Chicago ULSD Cycle 2 HO 7.50 8.50 2.25
Group Three gasoline RBOB 2.00 2.25 -1.00
Group Three ULSD HO 15.75 16.25 0.00