US Cash Products-Gasoline lower amid supply rise

NEW YORK, June 19 (Reuters) - Gasoline differentials east of the Rockies were lower Friday despite a sharply lower futures benchmark, as the complex remains weighed by a surprise build in national motor fuel supplies, traders said.

Gasoline inventories in the United States were up by 3.4 million barrels at 205 million last week as U.S. refinery output as well as imports of motor fuel increased, the Energy Information Administration reported Wednesday. [EIA/S]

In other cash fuels, distillates in the New York Harbor were steady to firmer on balance in a thin market where sellers are still seen not motivated in a slightly tighter market.

In the PADD 1 region, total distillates stocks fell last week to 60.2 million barrels, down from 61.1 million barrels, according to Wednesday's data from the Energy Information Administration (EIA). Still, they remain well above year ago levels after the weak economy dulled demand for fuel.

"Nothing is forcing selling so offers holding to numbers," a distillates trader said.

Exxon said it shut the hydrocracker at its 567,000-barrel-per-day Baytown, Texas, refinery and that repairs were underway. A spokeswoman said there was no estimate on when the repairs would be completed. [ID:nN18304957]

U.S. crude oil futures pushed higher earlier Friday but were later in the red along with refined products futures. July gasoline was leading the complex lower by midday with a loss of more than 3.5 percent. [O/N]

Tim Evans of Citi Futures Perspective said part of the selling in gasoline futures may relate to liquidation selling on the July RBOB crack spread. But he noted also that traders may be "cashing profits on their seasonal gasoline campaign and looking to accumulate crude or heating oil instead."

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