US Products Outlook-USG diesel dips on weak demand

NEW YORK, April 21 (Reuters) - U.S. Gulf Coast diesel values were expected to trend lower this week on weak demand and a closed export arb, traders said Monday.

Traders also predicted that refinery restarts at the end of maintenance season will boost distillate production and pressure prices further.

"Because of refiners coming back in the Gulf, and many more completing repairs, I would think this would have a negative effect on basis for most of this week," said one broker.

Gasoline values in the Gulf were expected to inch higher as the summer driving season approaches, traders said.

Heating oil values in the New York Harbor are expected to move lower this week as warmer temperatures in the Northeast cut demand, traders said.

Temperatures in the Northeast, the nation's largest heating oil market, are forecast to average mostly above normal through Friday, according to DTN Meteorlogix.

In the Midwest, ultra-low sulfur diesel was expected to remain weak, as damp weather delays spring fieldwork and planting, depressing demand for the fuel.

"Wet weather is expected to redevelop during this week with a turn to colder temperatures later in the week," forecaster DTN Meteorlogix said in its Monday forecast. (Reporting by Rebekah Kebede and Matthew Robinson)