US Cash Products-Distillates higher on contango, futures

NEW YORK, July 14 (Reuters) - Distillate in the U.S. Gulf Coast, New York Harbor, and Chicago rose Tuesday on a combination of the contango in benchmark heating oil futures, as well as some buying interest in the Harbor, dealers said.

Gulf and Chicago ultra-low sulfur diesel rose about a penny, while differentials climbed about a penny and a half in the Harbor.

In refinery news, Valero Energy Corporation (VLO.N) said that major units at its Ardmore, Oklahoma refinery and St. Charles, Louisiana, refinery are still down.[ID:nN14262315]

Valero also said the planned shutdown of its Aruba refinery for economic reasons is on schedule to be completed by the end of the week.[ID:nN14279485]

Crude oil prices were lower by midday Tuesday on continuing demand worries after beginning the day higher as the market took cues from global equities.[O/N]

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

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Newly prompt cycle 41 61-grade ultra low sulfur diesel rose about a penny on the offer against no bids, traders said, with the latest asking prices up from deals for cycle 40 at 3.50/4.00 cents over the print on Monday.

Low sulfur diesel however weakened, with bids down abut a penny to come in at 1.50 cents under versus little offers.

Heating oil was pegged at 5.75 to 4.75 cents under and was later valued at 5.00 cents under, or within Monday's broad range of 6 to 4.75 cents under, traders said.

Cycle 41 conventional regular M2 gasoline eased, trading at 8.85 cents under, followed by several deals at 9.00 cents under, then 9.10 cents under. This was down from Monday's 8.40 and 8.50 cents under the print.

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Amid some renewed demand, ULSD diesel was offered up to a penny and a half higher at 8.00 cents over the August print, adding to Friday's and Monday's gains.

"Some (buying interest) coming in this morning," a trader said.

Low sulfur diesel was a penny firmer at 1 cent over.

Jet fuel was holding Monday's gains, with offers at 12 cents over. But the only bidding was heard was at 9 cents over for barrels by July 24, traders added.

Kerosene rose a penny to 15 cents over.

The gasoline market was said to be extremely quiet with M2 by July 20th set at 4.50 to 5.00 cents under the print, down as much as half a penny, traders said.

F2 reformulated fell about a quarter cent at 0.35 to 0.75 cent over the print. V2 premium fell to 10.50 cents over from 11 cents over. H2 PBOB prompt barrels were set at 19.50 cents over with anys at 16.50 cents over.

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Group Three ultra-low sulfur diesel eased on Tuesday, pegged at 6.5/7 cents over the August heating oil board, after trading at 7 cents over on Monday.

In Chicago, the grade inched up a cent to trade at 4 cents over the board for cycle 2 barrels.

Gasoline differentials in Chicago slipped another cent, trading at even to the August RBOB board for cycle 2 while in Group Three the grade was within range at 3.75/3.25 cents under the August RBOB board. (Reporting by Rebekah Kebede and Haitham Haddadin)