US Cash Products-USG gasoline extends rally on storm

NEW YORK, Aug 29 (Reuters) - Gulf Coast cash gasoline rose on Friday, extending this week's rally, as the energy sector braced for Tropical Storm Gustav which may threaten the oil and gas infrastructure along the nation's refinery row next week.

Gulf gasoline's advance has gained traction in recent sessions, putting the grade up about 15 cents since Monday.

"Predictions are scary for the Gulf crude/gas production and for Gulf Coast refining - considering the general storm-track predicted and the potential strength of this storm," one market watcher said, regarding Gustav's impact.

Other cash U.S. oil products hubs east of the Rockies which are further north from the Gulf saw quiet dealings on Friday. Differentials in the New York Harbor recouped some of Thursday's losses.

Going into the three-day Labor Day weekend, traders were also watching newly formed Tropical Storm Hanna, in the Atlantic which could become a hurricane next week. [ID:nN29427082]

Motiva Enterprises reduced staffing to skeleton levels at its 220,000 barrel per day Norco, Louisiana refinery ahead of Gustav, but the plant is operating normally. [ID:nN29402694]

Valero said heavy oil cracker work at its 340,000 bpd Corpus Christi, Texas, refinery had no impact on production.

U.S. crude oil futures were up on the storm fears. September gasoline and heat oil futures will expire at Friday's close, lending volatility to the day's trade. [O/N]

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

U.S. GULF COAST <0#P-USG>

U.S. Gulf Coast cash gasoline differentials gained again on Friday, newly prompt cycle 51 M3 fall-grade gasoline traded at 21.75 cents over the Oct. RBOB contract, after earlier trades as low as 16.50 cents over.

Scheduling cycle 49 61-grade ultra-low sulfur diesel rebounded from Thursday's levels to trade at 8.50 cents over the Oct. heating oil contract.

Jet fuel was bid at 11.50 cents over with no offers seen.

NEW YORK HARBOR <0#P-NYH>

M2 regular M2 was last pegged at 7.00 cents under the Sept. futures, regaining some lost ground after having fallen to trade as low at 8.50 cents under late Thursday, down a penny and a half from midday Thursday, traders said.

F2 RBOB gasoline was set at evens to the Sept. merc, up from evens to 0.50 cent under earlier.