US Products Outlook-NYH distillates firmer on supplies

NEW YORK, March 24 (Reuters) - New York Harbor distillates were likely to hold firm this week as immediate supplies remain tight amid slower import shipments from the U.S. Gulf Coast or from Europe where the market remains tight, traders said.

A combination of refinery outages and exports to a very tight European market have contributed to the big decline in distillates stocks in recent weeks.

Inventories of distillate fuels in the United States -- which include diesel and heating oil -- are down to their lowest level in more than two years, and stand at 37.3 million barrels, down 14 percent from a year ago. Heating oil stocks in PADD 1, or the East Coast, were down to 18.9 million barrels, off more than 27 percent from a year ago.

Industry analysts polled by Reuters expect fresh data from the U.S. Energy Information Administration (EIA) on Wednesday to show that U.S. distillates stockpiles fell last week by an average of 1.6 million barrels, adding to the losses of the last several weeks. [ID:nN24335368]

Heating oil values in the Harbor rose about three cents per gallon with bids at 9.00 to 9.50 cents over the April print on Monday, traders said. Jet fuel offers rose to 25 cents over from trading at 24 cents over on Thursday.

Asked about the heat oil rise, a distillates trader in the Harbor said: "Tightness ... It should remain tight; nothing is working from the Gulf Coast or trans-Atlantic."

Gasoline should see some strength in the Gulf Coast and Midwest this week, with some gasoline-making units shut for work, traders said.

The gasoline-making fluid catalytic cracking unit at LyondellBasell's Houston, Texas, refinery was shut on Friday for unplanned work through mid-April. [ID:nN21475681]

"The refinery problems in the Gulf should give strength to the Gulf, and push the Midwest somewhat higher," said one Midwest broker.