US Cash Products-ULSD down as futures surge

NEW YORK, May 13 (Reuters) - Ultra-low sulfur diesel fell on Tuesday in the U.S. Gulf Coast and the New York Harbor, deepening recent declines as export interest thins and also compensating for a jump in heating oil futures, traders said.

"There's nothing flowing that I see at the moment," one distillates trader said when asked if the arbitrage window was open to send barrels from the East Coast to Europe.

Other traders in the Harbor said the arbitrage was currently not working across the Atlantic to Europe. ULSD cash differentials had surged in the New York Harbor in recent weeks, amid a flurry of diesel exports to Europe and South America.

Cash ULSD was also softer in the Midwest's Group Three.

Market analysts polled by Reuters expect fresh government data on Wednesday to show that U.S. inventories of distillate fuels, including diesel and heating oil, rose by 1 million barrels last week, helped by an increase in refinery utilization. [EIA/S]

In refinery news, Delek's gasoline-making fluid catalytic cracker was due back to normal rates on Wednesday after earlier rate cuts linked to work on a unit boiler at its 55,000 barrel-per-day oil refinery in Tyler, Texas. [ID:nN13389705]

Holly Corp.'s Woods Cross, Utah refinery was back to full rates by late last week after repairs from a fire at the beginning of the month, a spokesman said.[ID:nN13399013]

Exxon Mobil has successfully restarted its 118,000 barrel-per-day fluidic catalytic cracker at its 349,000 bpd Beaumont, Texas, refinery. [nN12302466]

For more refinery outages, click [REF/US]