US Cash Products-Cash RBOB spikes in New York Harbor

NEW YORK, May 2 (Reuters) - Prompt reformulated gasoline surged nearly three cents per gallon on Friday in the New York Harbor amid a shortage of immediate spot supplies of the motor fuel grade, traders said.

"The market is short RBOB ... That's why prices spiked today," said one gasoline trader.

The shortage of immediate spot supplies of reformulated gasoline after oil major BP (BP.L: Quote, Profile, Research) was believed to have gotten almost one million barrels against the expired May NYMEX RBOB contract, the trading sources said.

Differentials for prompt barrels rose despite talk of the expected arrival of ample tonnage from Europe later this month, traders said. One trader said 6 to 7 European-origin RBOB cargoes were due to arrive in the U.S. East Coast in the second half of May. Such cargoes are typically around 30,000 tonnes each.

"The view in the market is that most of those cargoes are coming after the 15th of the month," said the trader.

Ultra-low sulfur diesel was bid higher in the Harbor as few sellers of the grade were seen. ULSD differentials have been on the rise again this week on a combination of export demand and lack of sellers in the spot market, traders said.

In refinery news, Valero (VLO.N: Quote, Profile, Research) said it has shut a 40,000 barrel per day crude distillation unit for a 14-day planned turnaround at its 340,000 bpd Corpus Christi, Texas, refinery.[ID:nN02564497]

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U.S. crude oil futures rose about 3 percent Friday and NYMEX gasoline and heating oil posted similar gains. [O/N] [O/R]