US Cash Products-Gasoline arb reopens, diesels shut

NEW YORK, April 8 (Reuters) - Gasoline differentials in the Gulf are softer on impending European cargoes, waning demand and high stocks, trade sources said on Tuesday.

New York Harbor gasoline differentials remain strong but in in range, sparking several majors and traders to book cargoes from Europe, New York gasoline traders said.

Over the past 24 hours, European gasoline traders have provisionally booked six ships to move gasoline across the Atlantic, although some traders wondered if current economics supported the arb. [ID:nL08640069]

The U.S. government predicts that summer demand for gasoline will decrease for the first time in 17 years, as demand levels fall victim to record gasoline prices and a contracting U.S. economy. [ID:nN08342579]

High U.S. prices are seen closing the arb to Europe, but if the current softening trend in the Gulf continues, it could reopen, traders said.

A fall off in European distillate supply after a fire in a diesel unit at a Neste's Porvoo refinery in Finland has pushed up prices and cut supply there, forcing Europe to compete with South America for U.S. shipments. [ID:nL04664400]

U.S. diesel prices have already risen on strong South American demand.

For NYMEX reports click [O/N].

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