US Cash Products-NYH products soft as Hovensa restarts

NEW YORK, Nov 6 (Reuters) - New York Harbor gasoline eased Friday despite a sharply lower futures benchmark after news the giant Hovensa refinery was restarting its FCC unit, raising fears ample regional supplies could swell further.

Hovensa LCC said repairs on the 150,000 barrel-per-day gasoline-making fluid catalytic cracker at its 500,000 bpd refinery in St. Croix -- a key supplier to the East Coast -- have been completed and restart of the unit has begun. The unit went down for unplanned work on Oct. 26. [ID:nN06182025]

Irving Oil was also seen restarting units at their 300,000 barrel per day refinery in Saint John, New Brunswick which went down in September for an upgrade. [ID:nN06236718]

Brimming inventories of gasoline and distillates left the market indifferent to Sunoco's (SUN.N: Quote, Profile, Research) late Thursday announcement that all units ceased production this week at its 145,000-bpd Eagle Point refinery in New Jersey which it decided last month to idle due to weak margins. [ID:nN05151296]

"We have lots of product and Sun has 4 refineries so it's not an issue. Look at GC (Gulf Coast) which is cheap ... and all products shipping and we are not cold," a trader said.

Mild temperatures so far in the U.S. Northeast mean that demand for heating oil is not enough to whittle down PADD 1 supplies standing at more than twice year ago levels.

Northeast temperatures return to near or above normal through Tuesday, according to DTN Meteorlogix. [ID:nDTN790]

U.S. oil producers and refiners said operations were normal in and around the Gulf of Mexico early Friday as they monitored weather systems that could threaten offshore platforms and coastal facilities in the next several days. [ID:nN06188957]

NYMEX futures were sharply lower, with December crude oil, gasoline and heating all off more than 3 percent. [O/N]