UPDATE 1-Alon posts wider-than-expected Q3 loss

* Q3 adjusted loss $0.56/shr vs. est loss $0.23/shr

* Revenue down 34 percent

Nov 4 (Reuters) - Alon USA Energy Inc (ALJ.N) posted a third-quarter loss that was wider than expected, hurt by lower refining margins. "Our third quarter 2009 results reflect the impact of industry wide declines in light product crack spreads," Chief executive Jeff Morris said in a statement.

"There was a continual reduction in the sweet/sour and light/heavy spreads on crude oil, both of which negatively impacted the operating margins at our Big Spring and California refineries."

Refiners have seen their margins hit hard as the global recession hurts demand for products like diesel and stockpiles have swelled. Additionally, lower-grade, or sour crude oil which some of the refineries process, has lost much of the cost advantage over higher-grade crude.

Net loss for the quarter was $26.6 million, or 57 cents a share, compared with net income of $37.3 million, or 74 cents a share, in the year ago quarter.

Excluding items, the company's net loss for the quarter was 56 cents a share.

Net sales fell 34 percent to $1.25 billion.

Analysts, on average, were expecting a loss of 23 cents a share, before special items, on revenue of $1.39 billion, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $8.29 Wednesday on the New York Stock Exchange. (Reporting by Hezron Selvi in Bangalore; Editing by Anne Pallivathuckal)