US Products Outlook-Mogas up on imports, refinery snags

NEW YORK, April 13 (Reuters) - Gasoline differentials in cash product markets east of the Rockies are seen moving up on lower imports, refinery issues and slowing demand destruction ahead of the summer driving season, industry watchers said on Monday.

"The declines in U.S. gasoline consumption have slowed and are expected to begin to show consistent year-over-year gains by the third quarter," said Tancred Lidderdale of the Energy Information Administration.

Latest weekly inventory data from the U.S. Department of Energy showed that the four-week average demand for total gasoline, including blending components and ethanol, is 9 million barrels, only 0.2 percent lower than last year.

But recent weaker prices have closed the gasoline arb between the U.S. and Northwest Europe.

New York Harbor gasoline is expected to keep gains made on good buying Thursday, which absorbed the remainder of last week's cargo overhang. ConocoPhillip's Bayway refinery in Linden, New Jersey continues to operate at reduced rates after a fire in the crude distillation unit. The restart of the unit, expected sometime this week, is likely to counter weaker imports.

Last week, imports were 1 million barrels per day, in line with normal seasonal levels, according to EIA data, but European maintenance is expected to slow down cargoes, traders said.

Refinery problems in the Gulf are also seen giving some boost to gasoline differentials, with prompt conventional gasoline up 2 cents.

Demand for diesel in the Midwest is seen lower than normal as wet, cold weather is keeping farmers from planting.

"I do not think much fieldwork is going to get done this week," said Brian Lambert with the University of Illinois.