US Products Outlook-Bullish near-term on Sun refinery fire

NEW YORK, May 18 (Reuters) - Gasoline and oil product cash prices in the New York Harbor are set to get a lift after production at Sunoco Inc.'s (SUN.N: Quote, Profile, Research) Marcus Hook, Pennsylvania refinery was impacted due to a weekend fire.

"We are hearing the Marcus Hook fire still going on, most likely will effect gas prices ... It should affect everything a little," a New York Harbor cash oil trader said.

Cash gasoline prices edged up in the Harbor atop a 3.5-percent surge in benchmark June NYMEX gasoline futures PBM9 amid market concern the refinery's gasoline-producing FCC unit was impacted, oil traders said.

Sunoco said on Monday it would boost output at its Philadelphia and New Jersey refineries to make up for production lost at its Marcus Hook plant due to the Sunday night explosion and fire in an ethylene unit. [ID:nN18349103]

Gasoline differentials in other cash markets east of the Rockies were also higher, but mostly due to regional tightening of gasoline supplies.

The news of the fire hits a few days ahead of the official start of the summer driving season when millions of Americans take to the road during the May 23-25 Memorial Day weekend.

"The summer driving season approaches and supply concerns mount," noted Stephen Schork, editor of the Schork Report.

Government data last week showed a drop of 4.1 million barrels in national gasoline stocks in the May 8 week, mostly due to a cut in inventories in the PADD 1 East Coast region.

Analysts polled by Reuters expect new government weekly statistics due on Wednesday to show a draw of about 1 million barrels on average in U.S. gasoline inventories, as well as a build of about 800,000 barrels in distillates stocks. [EIA/S]