US Cash Products-Gasoline weakens as inventories rise

NEW YORK, June 18 (Reuters) - Gasoline price differentials east of the Rockies edged lower on Thursday for a second day after government data has showed a surprise build last week in the nation's stockpiles of motor fuel, traders said.

Gasoline inventories rose 3.4 million barrels to 205 million last week as U.S. refinery output of the fuel increased by 180,000 barrels per day and imports were up 218,000 bpd, the Energy Information Administration reported Wednesday. [EIA/S]

Analysts had forecast a 100,000-barrel stocks fall.

"I still have to say that gasoline supply is not looking totally, convincingly adequate for summer. However, this week's trends show that refiners and importers are making good progress," a market watcher said in a report.

The PADD 1 East Coast region saw total gasoline stocks up at 53.9 million barrels from 52.1 million the previous week.

In the Midwest, or PADD 2 region, stocks rose to 48.6 million barrels from 47.5 million. Gasoline inventories on the Magellan pipeline, which supplies the Midwest's Group Three market, climbed 900,000 barrels during the last week.

Marathon (MRO.N) said it has successfully completed restarting two unspecified units at its 72,000-bpd Texas City, Texas, refinery that were hit by a Tuesday power outage. [ID:nN18242048]

Total said it shut a unit at its 174,000-bpd refinery in Port Arthur, Texas. Unit 836 has been identified in previous reports as a part of the system to remove sulfur from fuel.

U.S. crude oil futures were up in choppy trading on Thursday, while gasoline and heating oil futures eased. [O/N]

For a complete list of refinery outages, click [REF/US]

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Prompt cycle 36 M2 gasoline traded at 7 cents under the July RBOB print, slipping another 1.25 cents from Wednesday levels.

Cycle 36 M1 gasoline traded at 4.75 cents under the July board, about a penny lower.

Newly prompt ultra-low sulfur diesel 61-grade for cycle 36 traded at 2.50 cents over the July heating oil board, up the 2 cents over seen on Wednesday.

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M2 conventional regular for end June fell to July RBOB futures minus 5.50 cents, down from Wednesday's range of about 4.75 cents to 5.25 cents under the print, traders said.