US Cash Products-Trade thin on high futures benchmark

NEW YORK, May 22 (Reuters) - Volatile energy futures market benchmarks were seen keeping the trade thin as shell-shocked physical U.S. oil product traders were sidelined unless forced to buy, traders said on Thursday.

"Word has it, that it's hand to mouth at these prices," said one Midwest broker.

Weak demand for gasoline ahead of the kick-off of the driving season ahead of the Memorial Day holiday continued to weigh on the market despite the restart of Valero's Christi FCC unit. [ID:nN22493842]

Diesel, which had been supported by cargo exports, was seen drifting lower as cargo demand to South America and Europe is waning.

U.S. crude oil futures fell after surging to over $135 a barrel on profit-taking while heating oil continued to surge to unseasonal highs. [O/N] [O/R]

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Newly prompt cycle 30 61 grade ultra-low sulfur diesel continued to slide lower, dropping a penny from where cycle 29 ended, as cargo exports are seen waning, traders said.

"Exports are iffy," said one trader. Last trade of less than 15 ppm sulfur fuel was at 10.75 cents over the June heating oil screen.