US Cash Products-Harbor gasoline markets maintain volatility
* Harbor gasoline diffs widen as NYMEX contract nears expiry
* Group Three gasoline down as supply increases
* Gulf conventional gasoline down on low demand, A2 up slightly
HOUSTON, June 28 (Reuters) - The New York Harbor F2 RBOB gasoline market extended this week's volatility as the July RBOB gasoline futures contract on the New York Mercantile Exchange (NYMEX) drew close to expiry, traders said.
Differentials for prompt barrels widened to be offered at 9.00 cents under July RBOB gasoline futures and bid at 6.00 cents over, traders said.
Barrels had traded at 7.50 cents under July futures on Wednesday following a sharp fall triggered by weak demand and expectations of improved supply due to arriving shipments from Europe.
Gasoline delivered by barge traded at 5.75 cents over July futures for delivery on Friday and Saturday.
Conventional M2 gasoline traded a penny per gallon lower at 3.00 cents under earlier in the day, then fell another cent per gallon and was offered at 4.00 cents under the August gasoline futures contract on the NYMEX, traders said.
In the Midwest, Chicago ultra-low sulfur diesel (ULSD) fell 1.50 cents a gallon to 1.50/2.50 cents over the August heating oil futures contract on the NYMEX as more buying pressured differential values lower, traders said.
"After that initial run-up everybody is trying to capture that value," a Midwest trader said referring to increased buying interest as ULSD differentials fell by 2.50 cents per gallon since Monday.
Group Three gasoline fell a half cent a gallon to 6.50/5.50 cents under July NYMEX RBOB futures, extending declines as supply increased in the region.
Magellan Midstream was scheduled to remove allocations for N-grade gasoline at multiple terminals in its Midwest system, the company said.
On the Gulf Coast, gasoline markets were mixed on Thursday as traders focused on a new five-day lifting cycle post-pipeline scheduling, traders said.
Differentials for A2 CBOB formulated for blending with 10 percent ethanol rose by a slight quarter cent per gallon to 23.00 cents under August RBOB futures on the NYMEX, while conventional M2 gasoline slipped 1.50 cents per gallon to 12.50 cents under on low demand, traders said.
Gulf ULSD differentials gained a penny per gallon to 7.25 cents over August NYMEX heating oil futures as its latest cycle scheduled to move on the Colonial Pipeline.
However, Gulf jet fuel extended Wednesday's decline of 1.50 cents per gallon on pipeline scheduling, slipping another penny per gallon to 6.50 cents over August NYMEX heating oil futures in the thinly traded market, traders said.
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Timing NYMEX Bid Offer Change
Contract U.S. GULF COAST <0#P-USG> * Scheduling M2 conventional gasoline Cycle 38 JUL RBOB -12.75 -12.25 -1.50 61-grade ULSD * Cycle 37 JUL HO 6.25 6.75 0.25 54-grade jet fuel Cycle 38 JUL HO 7.00 8.00 0.00 Heating oil Cycle 38 JUL HO -3.75 -3.25 0.00
NEW YORK HARBOR <0#P-NYH> M2 conventional gasoline Prompt AUG RBOB -4.25 -3.75 -2.00
Any-Month AUG RBOB -4.25 -4.25 -- F2 RBOB Prompt JUL RBOB 6.00 9.00 0.00
Any-Month JUL RBOB 5.75 6.25 0.00 ULSD Prompt AUG HO 11.00 12.00 -0.25
Any-Month AUG HO 11.00 12.00 0.00 Heating oil Prompt JUL HO 0.25 0.75 0.25
Any-Month JUL HO 0.25 0.75 0.00 Jet fuel Prompt AUG HO 11.00 12.00 -0.75
Any-Month AUG HO 11.00 12.00 -0.75 MIDWEST <0#P-G3> <0#P-MC> Chicago CBOB gasoline Cycle 1 AUG RBOB -7.50 -6.50 -1.00 Chicago ULSD Cycle 1 AUG HO 1.50 2.50 -1.50 Group Three gasoline JUL RBOB -6.50 -5.50 -0.50 Group Three ULSD JUL HO 14.00 14.50 0.25
(Reporting by Kristen Hays in Houston and Selam Gebrekidan in New York)
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