US Cash Products-USG gasoline up, Chicago sinks

NEW YORK, June 15 (Reuters) - Gasoline differentials in the U.S. Gulf Coast edged up on Monday but in the Chicago hub values sank three cents on a cycle change and refineries coming back from work, traders said on Monday.

"It's the last day of cycle 2 and refineries are getting back on line," said one Midwestern trader.

BP's Whiting, Indiana, refinery, which supplies the Chicago market, is scheduled to restart its fluid catalytic cracker in the second half of June.

Chicago gasoline had gained 3 cents on Friday in thin trade. Differentials for the grade in the small Midwestern hub have been volatile in the last few weeks as supplies of the fuel have fluctuated in the market.

In the New York Harbor, gasoline differentials were steady to firmer at the start of the trading week.

However, possibly coming into play later is news from U.S. Northeastern refiner Sunoco Inc (SUN.N: Quote, Profile, Research) which said Monday that the gasoline-making fluid catalytic cracking unit at the Girard Point section of its 335,000-barrel-per-day Philadelphia refinery has been back since Saturday. [ID:nN15192123]

Valero Energy Corp (VLO.N: Quote, Profile, Research) said it expects the fire-idled crude unit at its St. Charles refinery in Norco, Louisiana, will be down for another three weeks. Once the crude unit is restarted, the coker and vacuum units will follow, a spokesman said. [ID:nN15199745]

ConocoPhillips (COP.N: Quote, Profile, Research) reported a process upset at its 146,000 barrel-per-day Borger refinery in Texas.

On NYMEX, U.S. crude oil futures fell more than $2, dropping below $70 a barrel on the stronger dollar, concerns about economic recovery and as equities weakened. [O/N]