US Cash Products-NYH gasoline pulls back

NEW YORK, July 6 (Reuters) - Gasoline differentials in the New York Harbor softened Monday as an expected increase in imports of motor fuel was seen putting a damper on values following the Fourth of July holiday weekend, traders said.

"The market has been holding quite well, especially for promptish barrels. I think the market would eventually deteriorate later in the month," one Harbor trader said, adding he expects higher imports of European gasoline ahead.

According to the latest available government data, U.S. gasoline imports edged up to 979,000 barrels per day in the week ended June 26, up from 971,000 bpd in the previous week.

In other markets east of the Rockies, gasoline cash values weakened in the Chicago hub in the wake of the recent restart of a gasoline unit at BP's Whiting, Indiana, refinery as well as the fall-off of demand after Fourth of July weekend.

In other refinery news, Valero Energy Corp (VLO.N) said on Monday the crude distillation unit at its 185,000-barrel-per-day St. Charles, Louisiana refinery has not returned to service after a fire in early June idled the unit, the vacuum unit and a coker. A spokesman said the company does not currently have an update on the timetable for restart. [ID:nN06251546]

U.S. crude oil and refined products futures were trading sharply lower as economic concerns reflected in dismal employment numbers, tepid demand and rising fuel inventories kept pressure on crude oil futures. [O/N]

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

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

Scheduling cycle 39 88-grade heating oil slipped half a cent to talk at 8.50/8.00 cents under the August heating oil screen.