US Products Outlook-Diesels rise on exports, mogas down

NEW YORK, March 31 (Reuters) - Diesels are seen holding a healthy premium as demand from Chile and other South American countries are seen pulling barrels out of the U.S. Gulf Coast, traders said on Monday.

"I've heard two, maybe three, cargoes done," said one Gulf Coast trader.

A drought which has cut hydroelectric supplies combined with a cutback of natural gas by Argentina has made Chile more dependent on diesel to avert power outages.

Demand from Europe continues to pull barrels as well. Gas oil futures in London, the benchmark for European heating oil, are expected to gain further as traders anticipate more refinery maintenance in April than in May, increasing demand for U.S. cargoes.

In the Midwest, diesel demand is ready to tick higher ahead of the spring planting season. Chicago differentials are higher on refinery maintenance.

According to a spokesman for the Magellan Pipeline, there is no problem with supplies of diesel in the Group Three Midwest hub.

"Our supplies of X-grade are adequate," said Bruce Heine, a spokesman for the pipeline which carries gasoline and diesel up from the Gulf Coast to the Midwest.

Group ultra-low sulfur diesel prices are seen moving up further, bolstered by stronger values in the Gulf and in Chicago.

"April barrels will be poorly defined until we can put March barrels behind us," said one Group Three trader.