US Cash Products-Distillates down on stock builds, spring

NEW YORK, April 16 (Reuters) - Values for cash distillates were lower in the U.S. Gulf Coast and New York Harbor markets on Wednesday, amid news that U.S. distillate inventories rose last week and as temperatures in the U.S. Northeast warm up.

Distillate stocks edged up by 100,000 barrels, according to U.S. government data released Wednesday. Analysts had anticipated an inventory drop of 2.3 million barrels.

In the U.S. Northeast, the world's largest heating oil market, temperatures will average above normal Thursday through Monday, according to private forecaster Meteorlogix.

"People are getting rid of length...heat crack liquidation," said one Harbor trader. "Heating oil season is over, they don't want to carry the heat, too costly."

Demand for distillates over the past four weeks was down 0.9 percent from a year ago, the U.S. Energy Information Administration said in its Wednesday report.

In the U.S. Gulf Coast, trade was relatively thin as no products were set to schedule on the Colonial Pipeline, but the high distillate inventories were seen weighing on differentials as well as the futures benchmark, traders said.

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U.S. GULF COAST <0#P-USG>

Prompt cycle 24 61-grade ultra-low sulfur diesel fell a penny to 13.25 cents over the May heating oil screen.