* Group Three gasoline at highest level since Sep. 2011
* Gulf gasoline pares gains a day after refinery issue
* Harbor distillates trading slightly higher (Updates throughout)
NEW YORK, June 5 (Reuters) - Chicago ultra-low sulfur diesel fell about 4.00 cents a gallon on Tuesday after it switched to a new cycle, traders said.
Chicago ULSD traded at 13.00/15.00 cents over the July heating oil futures contract on the New York Mercantile Exchange (NYMEX), erasing its gains from this week.
Chicago CBOB gasoline rose 2.00 cents a gallon to 21.00 cents over NYMEX RBOB gasoline futures after the switch, building on a rally triggered by the shutdown of a crude distillation unit at BP Plc.'s 405,000 barrel-per-day (bpd) Whiting, Indiana, refinery. Regional supply constraints stoked the gasoline market's gains, traders said.
No restart date has been determined for the Whiting refinery unit restart, sources told Reuters.
Group Three gasoline rallied, tracing Chicago's gains and adding to Monday's 4.75-cent uptick, and traded at 8.00/9.00 cents over NYMEX July RBOB gasoline futures, its highest level since September 2011 and 3.00 cents higher than Monday's levels.
On the Gulf Coast, gasoline differentials see-sawed on Tuesday. Differentials started the day weaker, then rebounded to be even with Monday's gains on news that the newly commissioned crude distillation unit at Motiva Enterprises' 600,000 barrels-per-day (bpd) refinery in Port Arthur, Texas, was still out of production for repairs to a leaking valve.
The unit was taken out of production on Monday, lifting conventional M2 differentials up by 2.00 cents per gallon and A2 CBOB up by 3.25 cents per gallon.
Tuesday both weakened early in the day, then rebounded to Monday's levels of 10.25 and 9.50 cents, respectively, under July RBOB futures on the NYMEX. By day's end differentials for both retreated again, M2 by 0.50 cent to 10.00 cents under, and A2 by 0.75 cent to 11.00 cents under, traders said.
Gulf ULSD differentials ended the day down by half a cent per gallon at 3.00/3.50 cents over July NYMEX heating oil futures as its latest five-day lifting cycle scheduled to move on the Colonial Pipeline.
In the New York Harbor, F2 RBOB gasoline rose 1.50 cents a gallon to 9.50/10.00 cents over futures, with July barrels strong thanks to summer demand, according to traders. F2 gasoline for any-month delivery was seen a cent a gallon higher at 2.50/3.50 cents over.
Harbor distillates were seen broadly higher, with ultra-low sulfur diesel up a half cent to 7.50 cents over futures. Jet fuel rose a quarter cent to 9.25/9.75 cents over.
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Timing NYMEX Bid Offer Change
Contract U.S. GULF COAST <0#P-USG> * Scheduling M2 conventional gasoline Cycle 33 JUL RBOB -10.25 -9.75 -0.50 61-grade ULSD * Cycle 32 JUL HO 3.00 3.50 -0.50 54-grade jet fuel Cycle 33 JUL HO 4.50 5.50 -0.50 Heating oil Cycle 33 JUL HO -1.50 -1.00 0.00 NEW YORK HARBOR <0#P-NYH> M2 conventional gasoline Prompt JUL RBOB 0.00 2.00 0.00
Any-Month JUL RBOB -2.50 -2.00 -0.25 F2 RBOB Prompt JUL RBOB 9.50 10.00 1.50
Any-Month JUL RBOB 2.50 3.50 1.00 ULSD Prompt JUL HO 7.00 8.00 0.50
Any-Month JUL HO 7.00 8.00 0.25 Heating oil Prompt JUL HO -0.25 0.25 0.25
Any-Month JUL HO -0.25 0.25 0.25 Jet fuel Prompt JUL HO 9.50 10.00 0.50
Any-Month JUL HO 9.25 9.75 0.25 MIDWEST <0#P-G3> <0#P-MC> Chicago CBOB gasoline Cycle 2 JUL RBOB 20.00 22.00 2.00 Chicago ULSD Cycle 2 JUL HO 13.00 15.00 -4.00 Group Three gasoline JUL RBOB 8.00 9.00 3.00 Group Three ULSD JUL HO 4.00 4.50 0.50 (Reporting by Kristen Hays and Selam Gebrekidan;editing by Sofina Mirza-Reid)