US Cash Products-USG ULSD weak on low cargo demand

NEW YORK, July 25 (Reuters) - Ultra-low sulfur diesel in the U.S. Gulf Coast continued to weaken, despite weaker NYMEX benchmark futures as weak cargo demand depressed values, traderssaid on Friday.

In the Midwest, differentials perked up against the weaker NYMEX values, but outrights remained steady to lower, also due to sluggish demand.

"We are just entering a real lull in demand for this area of the country until the mid-September fall harvest gets under way," said one Midwest broker.

Colonial Pipeline froze nominations for cycles 42 and 43 on its distillate pipeline north of Collins, Mississippi.

The closure of the Mississippi River below New Orleans due to Hurricane Dolly may have forced some refiners to reroute fuel from barges to the pipeline, one broker said. [ID:nN25469777]

Colonial also announced a July 29 auction for storage space for diesels at its Woodbury Junction tank farm for six months.[ID:nN25256736]

In the New York Harbor, RBOB differentials moved up as sellers held back, hoping to boost prices.

"There are no containment issues. Tankage isn't full so no one is forced to sell," said one gasoline trader.

U.S. crude futures slipped on Friday as the dollar gained and an industry consultant estimated that OPEC's oil output will rise this month.[O/N] [O/R]