US Cash Products-ULSD diesel up in USG, NYH

NEW YORK, Nov 10 (Reuters) - Ultra-low sulfur diesel in the U.S. Gulf Coast jumped Tuesday, turning tail after heavy recent losses, on talk of cargoes going into floating storage and refiners mulling lower operating rates, traders said.

ULSD diesel price differentials also firmed in the New York Harbor amid some increased buying interest but cash prices in the Midwest were little changed, traders said.

U.S. refiner Tesoro Corp (TSO.N: Quote, Profile, Research) said late Monday its seven refineries may run as low as 77 percent of their combined rated capacity of 665,000 barrels per day in the fourth quarter due to maintenance and low demand for motor fuel.

Another refiner, Frontier Oil said it estimates runs at its 130,000-bpd El Dorado, Kansas refinery to be 81,500 bpd as work continues on the gasoline-making FCC unit and gofiner.

U.S. crude oil and refined fuels futures dropped as energy companies began to restore operations following Tropical Storm Ida, which faded into a tropical depression after making landfall along the Alabama coast. [ID:nN10304093] [O/N]

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

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

After weeks of moving lower, ultra-low sulfur diesel moved up sharply, adding a penny and half by midday on talk of cargoes of the fuel going into floating storage and of possible run cuts by refiners. Trade was done at 5.00 cents under the December heating oil screen. [ID:nN10317568]

Same cycle 74 grade was done at 6.75 cents under, in line with recent ranges. 88 grade heating oil was offered slightly higher at 6.50 cents over but no bids were seen.