US Cash Products-Group diesel up on harvest demand

NEW YORK, Nov 10 (Reuters) - Ultra-low sulfur diesel in Group Three hub rose on Monday on lingering agricultural harvest demand while distillates in the New York Harbor were steady to higher, traders said.

"While it (demand) has kept the diesel basis propped up I don't think it will be strong enough to create a squeeze and price spike," one Midwestern trader said.

ULSD diesel offers edged up in NY Harbor while heating oil values remained steady despite forecasts for colder weather in the Northeast next week.

"It's supposed to stay cool to Wednesday, Thursday is normal, warm weekend but then back to below normal next week," said a New York Harbor trader who seconded views from other traders that heating fuel demand was likely to pick up soon.

In refinery news, Valero said on Monday its 275,000 barrel per day refinery in Aruba was back at planned rates after it lost power due to Hurricane Omar in mid-October.

Western Refining said it starts Wednesday or Thursday a partial planned 28-day turnaround at its 125,000 bpd refinery in El Paso, Texas. Canada's Irving Oil Ltd has started a four-week maintenance turnaround at its 300,000 bpd refinery in Saint John, New Brunswick, the company said. [ID:nN10462045]

U.S. crude futures rose on Monday, partly on news Saudi Arabia was cutting supplies as expected after OPEC's decision to reduce output to bolster falling prices. Heating oil futures also rose sharply amid the forecasts for cooler temperatures soon in the U.S. Northeast. [O/N]

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

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Newly prompt cycle 64 61-grade ultra-low sulfur diesel traded at 0.50 cents over the stronger December heating oil screen, while same cycle 74 grade bids were pegged at 3.50 cents under the screen, with offers at 2.75 cents under the screen.

Cycle 64 54-grade jet was pegged at 5.25/5.75 cents over the same screen.

Newly prompt cycle 64 M4 conventional gasoline held Friday's firmer tone despite strong futures benchmark, trading at 2.50 cents under the NYMEX December RBOB futures screen.

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Heating oil offers were unchanged at either side of 1.50 cent under the December futures, traders said, as recent relatively warm temperatures in the Northeast were keeping demand thin.

But traders said demand was seen picking up soon as temperatures cool in the region the following week.

Ultra low sulfur diesel offers edged up a quarter cent at December futures plus 8 cents, but other grades of distillates were unchanged like low sulfur at December futures plus 2.00 cents and jet fuel at 11.50 cents over.

Activity was thin in the cash gasoline market, with traders only citing interest in H5 PBOB at 20 cents over the December RBOB futures, up from prompt offers at 19 cents over late on Friday and 17 cents over early Friday.

"Not much trading; as a matter of fact, all I hear is PBOB at +20," said one gasoline trader.

Prompt regular conventional M5 was seen at flat at about 3.75 cents over the print for the 214e cycle.

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Group Three ultra-low sulfur diesel ticked up a quarter cent despite higher December futures, trading at 5.00 cents over the December heating oil futures screen.

Chicago ultra-low sulfur diesel was valued around 2.25/2.75 cents over the print, either side of Friday's trading at 2.50 cents over the December benchmark.

Group Three gasoline was early on valued at 1.25 to 1.75 cents over the December print but was later pegged at 2.00/2.25 cents over, up from the 1.50 cents over seen Friday.

In Chicago, unleaded gasoline was offered at 1.00 cents under the screen, with bids holding at 1.50 cents under the December RBOB futures screen. (Reporting by Haitham Haddadin and Janet McGurty)