US Cash Products-USG diesel slips further in thin trade

NEW YORK, Nov 5 (Reuters) - U.S. Gulf Coast distillates remained soft in thin trade as weak demand worldwide continued to keep barrels in the region, traders said on Thursday.

Ultra-low sulfur diesel continued to slip on lack of demand from both Europe and the U.S. and pipeline shipping restrictions keeping barrels in the region.

"Trade is dead," said one Gulf Coast diesel trader.

The European arb is closed, traders said, and analysts estimate the bulk of the 76 million barrels of clean product storage off the continent is diesel.

In the New York Harbor, distillates differentials were flat to weaker as inventories in the PADD 1 region remain very high despite weekly draws last week in national distillates and heating oil stockpiles.

In refinery news, BP said it began the restart of ultra-cracker at its Texas City, Texas refinery. [ID:nSP3899192]

Valero had no production impact from work at its Port Arthur, Texas refinery. [ID:nN05110694]

NYMEX crude futures slipped on caution about the economy and weak demand. [O/N]

For a complete list of refinery outages, click [REF/US]