US Cash Products-gasoline off as futures surge

NEW YORK, Oct 29 (Reuters) - Gasoline values fell Thursday in most cash markets east of the Rockies, balancing surging futures benchmarks boosted by strong economic data which boosted hopes that fuel consumption would rise, traders said.

Government data Wednesday showed U.S. gasoline stocks rose 1.7 million to 208.6 million barrels last week after several weekly declines. [EIA/S] The data showed a rise in motor fuel imports -- a large portion of which ends in the New York Harbor -- to 756,000 barrels per day from 649,000 bpd the prior week.

In the U.S. Gulf Coast, cycle 62 conventional regular gasoline fell about half a cent while bigger losses were registered in the New York Harbor and the Chicago markets.

Colonial Pipeline said it would allocate shipping space on its main gasoline line north of Collins, Mississippi for barrels on cycle 63 as demand for space exceeds capacity. This may lead to further pressure on values in the Gulf as shipping restrictions cause barrels to pool in refinery row.

Valero said in a filing on Thursday the gasoline-making fluid catalytic cracker at its 170,000 barrel per day refinery in McKee, Texas were restored to normal after a power outage at the refinery's main substation. [ID:nN29363480]

Flint Hills Resources cut rates by 20 percent at its 330,000-barrel-per-day refinery in Pine Bend, Minnesota, because of poor margins, trade sources said. A company spokeswoman was not able to comment. [ID:nN29363998]

Run cuts at the giant 500,000 bpd Hovensa St. Croix refinery in the Caribbean, a key supplier to the U.S. East Coast, will remain in place this quarter due to weak refining margins, part owner Hess Corp. said Wednesday. [ID:nN28315194]

NYMEX energy futures rose sharply on data showing the U.S. economy grew in the third quarter. The soon-to-expire November gasoline and heating oil contracts were up 1.89 percent and 2.94 percent, respectively, and the December contracts, which then become the new benchmarks, posted similar gains. [O/N]

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