US Cash Products-Gulf, Group ULSD slips on merc, weak demand

NEW YORK, June 23 (Reuters) - Ultra sulfur diesel differentials in the U.S. Gulf Coast and the Midwest's Group Three markets dipped on Tuesday on a combination of higher NYMEX benchmark values and weaker than anticipated agricultural demand, dealers said.

Ultra-low sulfur diesel differentials in the Gulf Coast dropped as a newly prompt cycle began trading against the stronger August heating oil contract.

In Group Three, anticipated weaker than anticipated agricultural demand has pressured prices, dealers said.

"(Agricultural demand for diesel) got stalled a little after all the rain this weekend, but should get going again today," said one dealer.

Another broker said the agricultural demand was "too little, too late" to keep differentials propped up.

However, Chicago ultra-low sulfur diesel was pegged higher in a thinly traded market.

Gasolines in markets east of the Rockies were steady to lower on Tuesday on weak demand.

In refinery news, Total Petroleum said it was preparing to restart a unit identified as "Unit 804" at its Port Arthur, Texas, refinery. [ID:nN235974]

Crude oil futures on the NYMEX rose slightly by midday Tuesday in choppy trading with a weaker dollar supporting the price and weaker equities pressuring it.[O/N]